ACA tax delay bill passed in House
Democrats say that the measure won’t have a big impact on premiums and is just a ploy on the part of Republicans.
It’s not likely to become law, but the House has passed a bill to delay the Affordable Care Act’s health insurance tax and to expand health savings accounts.
The bill, according to The Hill, is aimed at protecting Republicans against attacks by Democrats on increases in ACA premiums—something that’s anticipated to take up quite a bit of air time in weeks to come as midterms approach. Republicans, and a few Democrats, have been strong critics of the tax for increasing premiums.
Related: Everything you need to know about the latest HSA bills
However, Democrats say that the measure won’t have a big impact on premiums and is just a ploy on the part of Republicans to shore up their defenses prior to the elections. And while Rep. Peter Roskam, R-IL, a sponsor of the bill, says of the tax, “This is a flawed tax that gets passed onto American families,” Rep. Sander Levin, D-MI, is countered, “It’s a political exercise, it’s aimed to help people who are in a vulnerable political position.”
Roskam is in for a major reelection battle this year, and his sponsorship of the bill could be a boost to his campaign.
Action had already been taken on the health insurance tax, with its implementation already suspended for 2019. The new measure just extends that suspension for 2020 and 2021.
The Hill quotes health care expert Joe Antos of the right-leaning American Enterprise Institute saying that the GOP health care measures are “all little adjustments; there’s really not much to them.”
Much to them or not, they come with some hefty price tags—something Democrats have criticized. The health care tax delay, coupled with the action on HSAs and the repeal earlier this week of the medical device tax, will add up to approximately $90 billion over 10 years. The report adds that the bills are not paid for.
Levin has said that it does not look likely for the bill to pass the Senate.
Meanwhile, Democrats on Wednesday introduced a bill that would allow Medicare to negotiate drug prices. The measure has more than 60 Democratic cosponsors, The Hill reports, and is being introduced now with the hope of revising it and passing it next year.
“It defies logic that the federal government is not using its enormous purchasing power to get a better deal for seniors on prescription drugs,” said Rep. Peter Welch of Vermont.