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Senators Call for 2-Year Delay of Health Insurance Tax

UNDATED

Senators Call for 2-Year Delay of Health Insurance Tax

UNDATED
DOCUMENT ATTRIBUTES
  • Authors
    Gardner, Sen. Cory
    Shaheen, Sen. Jeanne
    Barrasso, Sen. John
    Jones, Sen. Doug
    Scott, Sen. Tim E.
    Sinema, Kyrsten
  • Institutional Authors
    U.S. Senate
  • Subject Area/Tax Topics
  • Industry Groups
    Health care
    Insurance
  • Jurisdictions
  • Tax Analysts Document Number
    2019-6394
  • Tax Analysts Electronic Citation
    2019 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

DOCUMENT ATTRIBUTES
  • Authors
    Gardner, Sen. Cory
    Shaheen, Sen. Jeanne
    Barrasso, Sen. John
    Jones, Sen. Doug
    Scott, Sen. Tim E.
    Sinema, Kyrsten
  • Institutional Authors
    U.S. Senate
  • Subject Area/Tax Topics
  • Industry Groups
    Health care
    Insurance
  • Jurisdictions
  • Tax Analysts Document Number
    2019-6394
  • Tax Analysts Electronic Citation
    2019 TNT 35-10
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