Issue Brief 19-30
November 1, 2019

The Affordable Care Act (ACA) created an annual fee on certain health insurance providers, referred to as the health insurance tax. Congress suspended the tax for calendar years (CYs) 2017 and 2019. Under current law, it will be reinstated on January 1, 2020. Because Medicaid managed-care rates must consider the tax, Medicaid costs associated with it are estimated to increase almost $4.4 billion in CY 2020.