Senate opponents of the health insurance tax (HIT) have fired yet another salvo in the ongoing battle to have it repealed. The tax has long been a point of contention in the Patient Protection and Affordable Care Act.
On March 26, Sen. John Barrasso (R-Wyo.) filed an amendment to the ongoing Senate budget debate that would fully repeal HIT. Sen. Orrin Hatch (R-Utah) and Sen. Pat Roberts (R-Kan.) co-sponsored the amendment. America's Health Insurance Plans was quick to endorse the action.
"Repealing the health insurance tax would provide immediate relief to millions of families, small-business owners, seniors and states," AHIP President and CEO Karen Ignagni said. "Now is the time for Congress to act."
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Representatives Charles Boustany Jr. (R-La.) and Kyrsten Sinema (D-Ariz.) introduced similar legislation in the House in February.
"American families and small businesses are on the brink of being crushed under the weight of the Health Insurance Tax," Boustany said in a statement at the time. "This provision drives up costs for individuals, families, and small businesses while threatening hundreds of thousands of lost jobs over the next decade."
In a statement endorsing the proposal, AHIP estimated the cost of HIT. The tax started at $8 billion in 2014, increased by 40 percent in 2015 and will nearly double over the course of four years to $14.3 billion in 2018. The tax will continue to increase based on premium trends each year.
The health insurance tax will cost between 152,000 and 286,000 lost jobs by 2023, with 57 percent of those lost jobs represented in small businesses, and between $20 billion and $33 billion in lost economic activity, according to the National Federation of Business Research Foundation. Other analysts have warned it hurts consumers in the form of higher premiums.
According to analysis by Oliver Wyman, repeal of HIT would save consumers on average:
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$514 per year (individual), $688 per year (small group) and $719 per year (large group) for family coverage;
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$360 per year for each senior with Medicare Advantage; and
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$152 per year for each Medicaid enrollee.
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Alan Goforth
Alan Goforth is a freelance writer in suburban Kansas City. In addition to freelancing for several publications, he has written a dozen books about sports and other topics.
