Congress has unfinished business…
This year, the Affordable Care Act’s new tax on health insurance—commonly known as the Health Insurance Tax (HIT)—added hundreds of dollars to the cost of insurance for millions of individuals, families, small businesses and seniors across America. Over the next decade, the HIT is expected to cost working American families roughly $5,000 in higher premiums.
Fortunately, Congress passed legislation to suspend the HIT for one year in 2019.
It’s a good start, but it’s not enough.
As it stands, more than 140 million Americans could pay more when the HIT returns in 2020.
The House of Representatives earlier this year approved legislation that would suspend the HIT for 2020 and 2021. The Senate should start by passing that legislation without delay, and then Congress must work to permanently repeal the HIT Tax in order to provide much-needed premium relief to American families, seniors and small businesses.
In addition to the HIT, there are several other ACA taxes that must be repealed by Congress. Of note, the Cadillac Tax, a 40% tax on so-called “high-cost” health plans, stands to affect more than 180 million people relying on health coverage from employers. In addition, the Medical Device Tax, which is a 2.3% tax on the sales of most medical devices, targets a specific industry, lacks transparency and is rife with complexity. American small businesses, seniors and families are counting on Congress to act now.
How Hard Will You Get HIT?
Small businesses, seniors and families will be the ones to pay for the health insurance tax.
Unless Congress acts soon, the tax will lead to average premium increases ranging from $196 per person in the individual market to $458 per family in the large group market, and from $241 per Medicare Advantage member and $157 per Medicaid managed care enrollee. Source
Over the decade starting in 2020, the HIT would result in premium increases ranging from $2,473 per person in the individual market to $5,824 per family in the small group market.
Can you afford that extra cost for your health care?
Health insurance premiums have gone up enough. American small businesses, seniors and families are counting on Congress to keep their premiums from going even higher.
Congress must act right now to repeal the health insurance tax.
Calculate Your Premium Increase
See how much the Health Insurance Tax will cost you.