Letter to Senator Heitkamp Supporting S. 1978, the "Small Business and Family Health Tax Relief Act"

On October 23, 2017, the U.S. Chamber of Commerce sent this letter to Senator Heidi Heitkamp supporting the introduction of S. 1978, the "Small Business and Family Health Tax Relief Act."

October 23, 2017The Honorable Heidi HeitkampUnited States SenateWashington, D.C. 20510Dear Senator Heitkamp:The U.S. Chamber of Commerce applauds your introduction of S. 1978, the “SmallBusiness and Family Health Tax Relief Act,” which would extend the moratorium on the annualfee on health insurance providers by two years, ensure that consumers benefit from this delay in2018 and 2019, and make the health insurance fee tax deductible moving forward.S. 1978 would provide critical and timely relief from the Affordable Care Act’s perverseand harmful tax on health insurance premiums, which would further increase already escalatingpremiums for tens of millions of Americans. If the health insurance tax (HIT) resumes in 2018, itwill harm Americans purchasing many different types of insurance including individuals,families, small businesses, larger companies, and seniors covered with Medicare Advantage aswell as seniors with Medicare Part D prescription drug coverage.In 2018 alone, the HIT will increase premiums for families purchasing coverage in thelarge group market by more than $500, according to actuarial analysis performed by experts atOliver Wyman.Further, because of the regulations implementing the tax, the amount that must becollected in 2018 through higher premiums is higher than $14.3 billion attributable to thestatutory fees. As a result, the total premium impact of the health insurance tax in 2018 on hardworkingAmericans and retirees will be as much as $22 billion.We look forward to working with you on this necessary legislation to make healthinsurance more affordable for small businesses and individuals.