posted by Alicia Caramenico
on August 30, 2018
If the Health Insurance Tax (HIT) comes back in 2020, about 142 million consumers will face higher health care costs.
According to a new actuarial report from Oliver Wyman, a tax to the tune of $20.3 billion would not only harm health care consumers but also taxpayers, who will have more costs to bear as the HIT impacts premiums for Medicare Advantage and Medicaid managed care.
If Congress does not vote to delay the tax in 2020, the HIT would increase coverage premiums by 2.2% that year:
The tax was delayed in 2019, but the one-year suspension will expire at the end of 2019. Efforts to delay the tax in 2020 include bipartisan bills, H.R. 5963, and companion bill S. 3063. This legislation will help make premiums more affordable.
We encourage our leaders in Congress to build on this positive step by completely repealing the tax, sustaining those savings for millions of people.
It won’t be long before insurance providers start determining rates for 2020. Congress should act now to eliminate this harmful tax or suspend it for another two years. AHIP will continue to advocate for the delay and ultimate repeal of the HIT to improve affordability for all consumers.