If Congress fails to act soon, the Obamacare health insurance tax (HIT) will go into effect at the end of the year. This will mean higher taxes on more than 141 million consumers, including those in the individual market, large and small group plans, Medicare Advantage and Medicare Part D plans.
Thankfully, Senators John Barrasso (R-WY), Cory Gardner (R-CO), and Kyrsten Sinema (D-Ariz.) have introduced the “Jobs and Premium Protection Act” (S. 80), legislation that will repeal the HIT once and for all. ATR has released a letter of support for this legislation urging all Senators to co-sponsor.
If lawmakers allow the HIT to go into effect, this tax will increase premiums by 2.2 percent per year and almost $6,000 over the next ten years for a typical family of four with small or large group insurance.
The HIT is also highly regressive, with over half of those paying it making less than $50,000 a year.
One of the top priorities of the new Congress should be to enact health care reform that benefits all Americans. Repealing Obamacare’s harmful HIT is an excellent first step towards this goal. All members of Congress should support the “Jobs and Premium Protection Act.”