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, 2017

The Honorable Heidi Heitkamp

United States Senate

Washington, D.C. 20510

Dear Senator Heitkamp:

The U.S. Chamber of Commerce applauds your introduction of S. 1978, the “Small

Business and Family Health Tax Relief Act,” which would extend the moratorium on the annual

fee on health insurance providers by two years, ensure that consumers benefit from this delay in

2018 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 perverse

and harmful tax on health insurance premiums, which would further increase already escalating

premiums for tens of millions of Americans. If the health insurance tax (HIT) resumes in 2018, it

will harm Americans purchasing many different types of insurance including individuals,

families, small businesses, larger companies, and seniors covered with Medicare Advantage as

well as seniors with Medicare Part D prescription drug coverage.

In 2018 alone, the HIT will increase premiums for families purchasing coverage in the

large group market by more than $500, according to actuarial analysis performed by experts at

Oliver Wyman.

Further, because of the regulations implementing the tax, the amount that must be

collected in 2018 through higher premiums is higher than $14.3 billion attributable to the

statutory fees. As a result, the total premium impact of the health insurance tax in 2018 on hardworking

Americans and retirees will be as much as $22 billion.

We look forward to working with you on this necessary legislation to make health

insurance more affordable for small businesses and individuals.