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Majority of U.S. House of Representatives Supports Repeal of Health Insurance Tax
For Immediate Release
June 17, 2013
Legislation to Repeal Tax Reaches 218 Co-Sponsors
Washington, D.C. – Bipartisan
legislation to repeal the Affordable Care Act’s (ACA) health insurance tax has
reached 218 co-sponsors, a majority of the U.S. House of Representatives. Reaching 218 co-sponsors is an important
milestone that adds momentum to efforts to repeal this tax in Congress.
ACA imposes a new sales tax on health insurance that starts at $8 billion in
2014, increases to $14.3 billion in 2018, and increases every year thereafter.
The Joint Committee on Taxation estimates that the health insurance tax will
exceed $100 billion over the next ten years. The health insurance tax is
larger than the device tax and the prescription drug tax combined.
Charles Boustany (LA) and Jim Matheson (UT) earlier this year introduced the Jobs and Premium Protection Act (H.R. 763),
bipartisan legislation to repeal the health insurance tax. This bill now
has over 218
co-sponsors, representing a majority of the U.S. House of
Representatives. Senators John Barrasso
(WY) and Orrin Hatch (UT) introduced a Senate version of this bill (S.603).
“Taxing health insurance makes
it more expensive, and that is the opposite of what health care reform was
supposed to accomplish,” said AHIP President and CEO Karen Ignagni.
“Congress should take action this year to protect families, small businesses,
and seniors from the harmful effects of this tax.”
to an analysis
by Oliver Wyman, this tax alone will mean that next year an individual
purchasing coverage on his or her own will pay $110 in higher premiums, small
businesses will pay an additional $360 for each family they cover, 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 enrolled. A follow-up analysis by
Oliver Wyman highlights the impact this tax will have on consumers and
employers in all 50 states.
recently submitted comments to the House
Ways and Means Committee Work Groups urging repeal of the ACA's health
insurance tax as part of a comprehensive tax reform package.
learn more about the impact the health insurance tax will have on the
affordability of health care coverage, visit AHIP’s Coverage Blog here: End the Health Insurance Tax. AHIP is also raising the awareness of the
health insurance tax repeal effort on Twitter using the hashtag #repealthetax.
Providing Health Benefits for Over 200 Million Americans.