AHIP Supports Bipartisan Legislation to Repeal the ACA’s Health Insurance Tax
For Immediate Release
February 15, 2013
D.C. – America’s Health Insurance Plans’ (AHIP) President and CEO Karen
Ignagni released the following statement in support of bipartisan legislation
co-sponsored by Representatives Charles Boustany (R-LA) and Jim Matheson (D-UT)
to repeal the Affordable Care Act’s (ACA) health insurance tax:
“The health care
reform law includes a new $100 billion sales tax on health insurance that will
drive up costs for consumers and employers. Unless this tax is repealed,
next year an average family will pay over $300 in higher premiums, seniors
enrolled in Medicare Advantage will face $220 in reduced benefits and higher
out-of-pocket costs, and state Medicaid managed care plans will incur an
additional $80 in costs for each person covered. At a time when many
families are struggling due to the weak economy, this tax will mean less money
to pay the bills or save for retirement or a child’s education.
insurance tax will add a financial burden on families and small businesses at a
time when they can least afford it, and it should be repealed.”
Facts about the
Health Insurance Tax:
next year the ACA imposes a new $100 billion tax on health insurance. The
tax will start at $8 billion in 2014, increasing to $14.3 billion in 2018, and
will continue to increase each year.
health insurance tax is larger than the device tax and the prescription drug
health insurance tax will increase costs for individuals and families
purchasing coverage on their own, small businesses, seniors and people with
disabilities enrolled in a Medicare Advantage plan, and state Medicaid managed
health insurance tax is far greater than the minimum penalty for those who
choose not to buy health insurance – further incentivizing young, healthy
people to forgo purchasing insurance until they need medical care.
information about the health insurance tax, check out our infographic
video and visit our website at www.ahip.org/HIT.
Providing Health Benefits for Over 200 Million Americans.