AUTHOR Les Masterson
PUBLISHED May 29, 2018
Dive Brief:
- A
bipartisan group of lawmakers is pushing a bill to delay the Affordable
Care Act's health insurance tax for two years. The Health Insurance Premium
Reduction Act is sponsored by Reps. Kristi Noem, R-S.D.,
Jackie Walorski, R-Ind., Kyrsten Sinema, D-Ariz., and Ami
Bera, D-Calif.
- Congress
suspended the fee for 2017, and lost nearly $14 billion. The
tax is now back in effect but has been suspended again for 2019.
- The levy
is among several in the ACA intended to help fund insuring more Americans,
but payers and employers continue to push for its repeal.
Dive Insight:
When Congress implemented the tax in 2014, the HIT was
seen as a way to raise billions. The federal government would use that funding
to offset more people receiving health insurance through Medicaid expansion and
subsidized coverage. The Congressional Budget Office estimated
it would raise $142 billion over a decade.
Though suspending the tax lost the government millions,
payers say the HIT forces them to increase premiums. An October
2017 Oliver Wymanreport said
the HIT increases premiums by nearly 3% each year.
Also, the National Federation of Independent Business Research
Foundation charged that the tax will cost between 152,000 and
286,000 jobs by 2023. Noem, a cosponsor of the bill, said in a statement that
putting off the tax will remove “a significant burden, saving consumers
hundreds of dollars annually.”
Both payers and business groups back the new
legislation. America’s Health Insurance Plans released
a statement that said suspending the tax will lead to lower premiums no matter
how people get health insurance. “We encourage our leaders in Congress to
build on this positive step by completely repealing the tax, sustaining those
savings for millions of people,” AHIP said.
A business group that opposes the tax also spoke
positively about the bill. Stop the HIT called
it a “regressive tax… on small businesses.” Stopping the tax for 2020 will save
families more than $570 on average in the small group market, the group argued.
Recommended Reading:
Rep. Kristi NoemPress release
- Oliver WymanNew Analysis: How the ACA’s HIT Will Impact 2018
Premiums
Congress.govH.R.5963 - To delay the reimposition of the annual
fee on health insurance providers until after 2020.
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