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

posted by Clare Krusing

on January 16, 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 the Jobs and Premium Protection Act introduced today by Senators John Barrasso (WY) and Orrin Hatch (UT) to repeal the Affordable Care Act’s (ACA) health insurance tax:

“At a time when policymakers are seeking solutions to make health care more affordable, repealing the $145 billion health insurance tax provides immediate relief to families, small business owners, seniors, and states. This tax substantially increases the cost of coverage at a time when individuals can least afford it. Repealing the health insurance tax is a practical solution that would help millions of Americans.” 

Background on 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 consumer 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 www.ahip.org/HIT.

 

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Providing Health Benefits for Over 200 Million Americans.