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AHIP Statement On HIT Repeal

posted by Clare Krusing

on March 26, 2015

For Immediate Release

Washington, D.C. — This afternoon, Sen. John Barrasso (R-WY) filed an amendment, as part of the ongoing Senate budget debate, proposing to fully repeal the ACA’s health insurance tax (HIT). Senate Finance Committee Chairman Orrin Hatch (R-UT) and Sen. Pat Roberts (R-KS) are co-sponsors of this amendment.

In response, AHIP President and CEO Karen Ignagni issued the following statement:

“Repealing the health insurance tax would provide immediate relief to millions of families, small business owners, seniors, and states. Now is the time for Congress to act.”

Background on the Health Insurance Tax:

  • The health reform law includes a $145 billion tax on health insurance.  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 trend each year.
  • According to an analysis by Oliver Wyman, repeal of the health insurance tax will save consumers on average:
  • $514 per year (individual), $688 per year (small group), and $719 per year (large group) for family coverage;
  • $360 per year for each senior with Medicare Advantage; and
  • $152 per year for each Medicaid enrollee.

For more information about the health insurance tax, visit our website at www.ahip.org/HIT.

 

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Providing Health Benefits for Over 200 Million Americans.