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AHIP Supports Bipartisan House Legislation To Repeal The ACA’s Health Insurance Tax

posted by Clare Krusing

on February 12, 2015

For Immediate Release

Washington, D.C. – America’s Health Insurance Plans’ (AHIP) President and CEO Karen Ignagni released the following statement in support of bipartisan legislation introduced today by Representatives Charles Boustany (R-LA 3) and Kyrsten Sinema (D-AZ 9) to repeal the Affordable Care Act’s (ACA) health insurance tax:

“Imposing a tax on health insurance does nothing to make coverage more affordable or accessible. It only increases costs for families, seniors enrolled in Medicare Advantage, small businesses, and state Medicaid programs. Repealing the health insurance tax would be an important step to affordability for millions of Americans.”

More than 150 members of the House of Representatives have signed on to support repeal of the health insurance tax. Senators John Barrasso (WY) and Orrin Hatch (UT) also introduced a Senate version of this bill (S.183).

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 https://www.ahip.org/issues/health-insurance-tax/

 

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Providing Health Benefits for Over 200 Million Americans.