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AHIP Statement On The Health Insurance Tax

posted by Clare Krusing

on December 16, 2015

For Immediate Release

Washington, D.C. — “The health insurance tax drives up the cost of coverage for millions of Americans. Repealing or suspending this tax would be a victory for seniors, small business owners, and middle-class consumers.”
— Clare Krusing, AHIP Press Secretary

Annual Premium Savings Per Enrollee for 2017-2020 (Oliver Wyman, 2015)

hit press release 12_16_15

 

Background on the Health Insurance Tax

  • The health reform law includes a $142 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.
  • The Congressional Budget Office said that this tax will be “largely passed through to consumers in the form of higher premiums.”
  • A 2014 analysis from NFIB estimates that the HIT will result in a reduction in private sector employment of 152,000 to 286,000 jobs by 2023, with 57 percent of the job losses coming from small businesses.  This will amount to a reduction of U.S. real output (sales) by between $20 billion to $33 billion during the same time frame.
  • Currently, legislation to repeal the HIT has bipartisan support in Congress with more than 270 co-sponsors (Senate – Barrasso-Hatch (S. 183); House – Boustany-Sinema (H.R. 928)).

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Providing Health Benefits for Over 200 Million Americans.