Great news on a long-term policy priority for the Indiana Chamber! A bill has been introduced to delay the implementation of the Affordable Care Act’s Health Insurance Tax (HIT) until 2020 and to make the fees tax-deductible. As things currently stand, the tax would come into effect in early 2018 and bring with it increased health care costs.
Senator Joe Donnelly is one of two co-sponsors of the measure from Sen. Heidi Heitkamp (D-ND).
The Indiana Chamber opposes HIT because of its impact on the small business community. HIT rests entirely on the insured marketplace, so that means businesses and their workers will feel the brunt. Higher premiums for consumers, including small and family-owned businesses – no thanks! And to make matters worse, the tax does not sunset but increases through 2024 and is adjusted for premium growth.
A recent report funded by UnitedHealth Group says that HIT would “increase 2018 health care costs by $158 per person on the individual market, and by $245 for Medicare Advantage participants.”
The HIT has been a bipartisan bone of contention for years, with a previous one-year delay in implementation already having passed Congress.
The Heitkamp-Donnelly bill, S. 1978, now will be reviewed by the Senate Finance Committee.
The Indiana Chamber will continue to voice its approval for this measure to our delegation members.