Issue Brief 17-40
December 7, 2017

The Affordable Care Act (ACA) created an annual fee on certain health insurance providers, referred to as the health insurer tax. Congress suspended the tax for calendar year (CY) 2017. Under current law, it will be reinstated on January 1, 2018. Because Medicaid managed-care rates must factor in the tax, Medicaid costs associated with it are estimated to increase $4.8 billion in 2018.