Reminder: Under Obamacare the IRS Taxes Drug Companies For Selling Life Saving Medication

Katie Pavlich | August 06, 2013 12:00 PM

In June 2012, Obamacare was officially declared a big, fat tax and now, the IRS is moving forward with plans to tax pretty much everything it can. I've already written extensively about the job and innovation killing medical device tax, but according to a

GAO report, the IRS has the authority to tax drug companies for the number of life saving medications it sells. As a result, drug prices go up and costs are passed onto patients who need those medications.

Established annual fee on manufacturers and importers of branded prescription drugs.

The report notes this tax was established in 2011, which explains recent increases in the cost of medication.

A new analysis from HealthPocket of early health insurance rate filings finds that consumers who choose the lower cost Bronze Plans and Silver Plans under the Affordable Care Act (aka "Obamacare") will likely be paying more for prescription drugs than they do now. Compared to comparable existing individual and family plan copays and coinsurance costs, consumers with prescription drug coverage can expect to pay an average of 34 percent more out of pocket for these medications if trends continue.

"About 70 percent of Americans use prescription drugs, and they are going to need to pay very, very close attention to what plans offer to minimize out-of-pocket increases for medications," said Kev Coleman, head of Research & Data at HealthPocket and author of the study. "When it comes to drug costs and changes in our newly reformed health care system, the fine print really matters."