Senators Call for 2-Year Delay of Health Insurance Tax
Senators Call for 2-Year Delay of Health Insurance Tax
- AuthorsGardner, Sen. CoryShaheen, Sen. JeanneBarrasso, Sen. JohnJones, Sen. DougScott, Sen. Tim E.Sinema, Kyrsten
- Institutional AuthorsU.S. Senate
- Subject Area/Tax Topics
- Industry GroupsHealth careInsurance
- Jurisdictions
- Tax Analysts Document Number2019-6394
- Tax Analysts Electronic Citation2019 TNT 35-10
Delay the Health Insurance Tax (HIT) Immediately
Cosponsor S. 172, the Health Insurance Tax Relief Act
Dear Colleague:
We write today to request your support for S. 172, the Health Insurance Tax Relief Act, bipartisan legislation to delay the Health Insurance Tax (HIT) for two years, 2020 and 2021. The Health Insurance Tax, established by the Affordable Care Act, would impose a fee on health insurance plans, which would then be passed down from health insurers to consumers and small businesses.
According to America's Health Insurance Plans (AHIP), the HIT would impose an additional $16 billion in taxes on health plans should Congress allow implementation in 2020. At a time when 40% of Americans cannot cover a $400 emergency expense, this damaging tax has the potential to put families across the country through unnecessary financial hardship.
Without Congressional action, approximately 142 million Americans will begin to feel the costly effects of this tax. According to the actuarial firm, Oliver Wyman, specific increases include: 2.2% or $196 per person in the individual market, $479 per family in the small-group market, $458 in the large-group market and $157 for Medicaid premiums on average nationwide. As health care costs continue to rise throughout the supply chain, it is important Congress acts to keep this tax from escalating prices.
Millions of seniors and those with developmental disabilities that depend on Medicare Advantage plans stand to see the greatest financial impacts of the Health Insurance Tax. According to Oliver Wyman, without the 2019 moratorium, Medicare Advantage premiums would have increased by 55.7% from $393.05 to $612.09, representing the roughly 21 million Americans with disabilities that rely on Medicare Advantage.
In both 2015 and 2018 Congress acted in a bipartisan fashion to suspend this tax. We call again upon our colleagues to join in protecting both American consumers and small businesses from unbearable health care cost increases. Acting quickly to suspend this tax will give health insurers the certainty necessary to forestall premium increases from HIT implementation and protect Americans from the additional financial hardship.
Should you have any questions or wish to sign on, please contact Alison Toal in Senator Gardner's office at Alison_Toal@gardner.senate.gov or Peter Fise in Senator Shaheen's office at Peter_fise@shaheen.senate.gov.
Sincerely,
Cory Gardner
United States Senator
Jeanne Shaheen
United States Senator
John Barrasso
United States Senator
Doug Jones
United States Senator
Tim Scott
United States Senator
Krysten Sinema
United States Senator
Supporting Organizations:
60 Plus Association
Alliance for Affordable Services
American Bakers Association
American Council of Engineering Companies
American Farm Bureau Federation
American Hotel & Lodging Association
American Rental Association
American Supply Association
America's Health Insurance Plans (AHIP)
Americans for Tax Reform
Area Agency on Aging Palm Beach/ Treasure Coast, Inc.
Associated Builders and Contractors
Associated General Contractors
Association of California Life & Health Insurance Companies
Association for Behavioral Health and Wellness
Auto Care Association
Automotive Recyclers Association
Better Medicare Alliance
California Association of Health Plans
ChenMed
Coalition of Texans with Disabilities
Colorado Business Roundtable
Colorado Farm Bureau
Commerce and Industry Association of New Jersey
Connecticut Association of Health Underwriters
Consumer Action
Council for Affordable Health Coverage
Einstein Healthcare Network
Galen Institute
Greater Philadelphia Business Coalition on Health
Greater Manchester Chamber
Healthcare Leadership Council
Independent Electrical Contractors
International Council on Active Aging
International Franchise Association
International Housewares Association
Iora Health
MANNA
Martin's Point Health Care
Meals on Wheels America
National Association of Convenience Stores
National Association of Dental Plans
National Association of Health Underwriters
National Association of Hispanic Nurses
National Association of Home Builders
National Association of Manufacturers
National Association of Nutrition and Aging Services Programs
National Association of Wholesaler-Distributors
National Club Association
National Community Pharmacists Association
National Hispanic Council on Aging
National Hispanic Medical Association
National Federation of Independent Business
National Funeral Directors Association
National Lumber and Building Material Dealers Association
National Medical Association
National Minority Quality Forum
National Restaurant Association
National Retail Federation
National Roofing Contractors Association
National Small Business Association
National Taxpayers Union
New Jersey State Nurses Association
New York Farm Bureau
Northwell Health
NUCA Representing Utility and Excavation Contractors
Nurse Practitioner Association New York State
Oak Street Health
Partnership for Employer Sponsored Coverage
Petroleum Marketers Association of America
Philadelphia Corporation for Aging
Pittsburgh Business Group on Health
Plastics Trade Association
Population Health Alliance
Prevea Health
Printing Industries of America
Professional Golfers Association
Public Sector Healthcare Roundtable
Retail Industry Leaders Association
SilverSneakers by Tivity
Small Business and Entrepreneurship Council
Small Business Association of Michigan
SNP Alliance
Society of American Florists
South Metro Denver Chamber
Specialty Equipment Market Association
Summa Health System (Ohio)
Stop the HIT
Teachers' Retirement System of Kentucky
The Latino Coalition
U.S. Chamber of Commerce
Visiting Nurse Service of New York
- AuthorsGardner, Sen. CoryShaheen, Sen. JeanneBarrasso, Sen. JohnJones, Sen. DougScott, Sen. Tim E.Sinema, Kyrsten
- Institutional AuthorsU.S. Senate
- Subject Area/Tax Topics
- Industry GroupsHealth careInsurance
- Jurisdictions
- Tax Analysts Document Number2019-6394
- Tax Analysts Electronic Citation2019 TNT 35-10