Legislation to Suspend the Health Insurance Tax Will Help Make Premiums More Affordable
posted by AHIP
on September 11, 2018
Beginning in 2014, the Affordable Care Act (ACA) imposed a tax that is projected to exceed $260 billion over 10 years (2020-2029) in what is essentially a sales tax on health insurance coverage. Actuarial analyses found that the health insurance tax negatively impacts consumers and employers by adding to the cost of coverage purchased directly from a health insurance plan in the individual and employer markets, as well as beneficiaries in public programs like Medicaid and Medicare.
In January 2018, recognizing the growing impact of the health insurance tax on these constituents, Congress approved a budget agreement that included a one-year suspension of the tax in 2019. The one-year suspension of the tax was enacted with strong bipartisan support in Congress.