NAHU called on members to take action on our latest Operation Shout to delay the ACA’s Health Insurance Tax through calendar year 2021. Last week, Representatives Ami Bera (D-CA) and Jackie Walorski (R-IN) introduced H.R. 1398, the Health Insurance Tax Relief Act of 2019, joining S. 172 introduced in January by Senators Cory Gardner (R-CO) and Jeanne Shaheen (D-NH), to extend the current moratorium of the HIT for 2019 for an additional two years through 2021. These bipartisan bills would also provide additional time for lawmakers to enact a permanent solution to a tax that is due to add an additional $500 in premiums per affected family every year.
The tax, dubbed a fee, assesses a tax on all health insurance companies of insured plans both inside and outside the exchange based on their "net premiums" written. While it is charged to insurers to help pay for the ACA, it is ultimately passed down in the form of increased premiums for small businesses, middle-income families, Medicare beneficiaries and young workers, with more than half of the tax paid for by those earning between $10,000 and $50,000. Over a 10-year period, this tax is projected to increase premiums for single coverage by an average of $2,150 and family coverage by an average of $5,080.
NAHU, along with the Stop the HIT coalition, has long advocated for permanent repeal of this tax, or short of that, to provide for a temporary delay of the tax until a more comprehensive solution can be implemented. NAHU was a leading advocate of the previous moratoriums, enacted by President Obama for calendar year 2017 and by President Trump for calendar year 2019. We urge Congress to act quickly to extend the current moratorium through 2021, as action is needed with enough time for insurers and employers to adequately plan and ensure that American families are not impacted by the tax.
Contact your senators and representative. Send an Operation Shout today asking your legislators to support H.R. 1398 and S. 172. |
