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
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.