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Majority Of U.S. House Of Representatives Supports Repeal Of The Health Insurance Tax

posted by Clare Krusing

on April 22, 2015

For Immediate Release

Washington, D.C. – Bipartisan legislation to repeal the ACA’s health insurance tax (HIT) has reached 218 co-sponsors, a majority of the U.S. House of Representatives. The legislation, introduced by Representatives Charles Boustany (R-LA 3) and Kyrsten Sinema (D-AZ 9), would protect millions of families, seniors, small business owners, and states from higher costs imposed by the tax. As support continues to build, reaching 218 co-sponsors is an important milestone that adds to the growing momentum in Congress to repeal the HIT.

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

“Repealing the health insurance tax is a practical solution that would benefit millions of families and small business owners. The health insurance tax makes coverage more expensive and it should be repealed.”

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.

 

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