There’s broad, bipartisan support in Congress to provide relief from the Health Insurance Tax.

Senators Pat Toomey (R-PA) and Mike Crapo (R-ID) introduced the Permanent Relief for Seniors and Medicare, Medicaid, Human Services Extension Act of 2019, including a two-year delay of the Health Insurance Tax for 2021 and 2022.

A bipartisan group of House Freshmen called on Speaker Pelosi and Minority Leader McCarthy to extend the moratorium on the Health Insurance Tax for 2020 and beyond.

Stop The HIT champions requested House and Senate leadership provide relief from the costly Health Insurance Tax before it goes into effect on January 1, 2020.

Stop The HIT Coalition members urged Congressional leadership to build on the bipartisan work of our champions to take action on the HIT now, before it returns and further drives up the cost of health care for small businesses, hardworking families and seniors.

Small businesses and hardworking families are counting on Congress to fulfill their promise to address rising health care costs. Suspending the Health Insurance Tax is a critical step toward providing relief to 142 million small business employees and their families.   

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The rising cost of healthcare remains of paramount concern to many American voters. And this concern holds true for a large and committed voter population—seniors, who continue to show up at the polls far more than any other age group. Despite their consistent voter turnout and engagement on important issues, seniors are still being hit hard by policies that threaten not only their wallet but also their ability to plan ahead on a fixed income. Of immediate concern is the looming 2020 Health Insurance Tax (HIT), set to return on January 1, 2020 to the tune of $16 billion.

For over 50 years, the Medicare program has provided high-quality, affordable healthcare for America’s seniors. However, the return of the HIT will put beneficiaries at risk, with higher premiums, increased cost-sharing and fewer supplemental benefits. With nearly two-thirds of Medicare beneficiaries living with chronic conditions, higher taxes on their Medicare coverage will make healthcare costs even more impossible to afford. As a result, seniors will not receive the protection and support they need.

Further, the more than 22 million seniors and Americans with disabilities who rely on Medicare Advantage will be disproportionately affected by the 2020 HIT. Absent immediate Congressional action to delay or repeal the HIT for 2020, Medicare Advantage beneficiaries will be met with premium increases by as much as $241 annually. Moreover, the 2020 HIT could put care coordination and other Medicare Advantage benefits at risk for those who need it the most.

This is why we’re calling on Congress to prioritize HIT relief prior to 2020. Thankfully, seniors have a strong champion in Senator Cory Gardner (R-CO), lead sponsor of legislation to delay the impact of the HIT on seniors, small businesses and middle-income families. “The impacts of this tax touch our seniors who have earned their benefits,” urged Gardner in a speech on the Senate floor.

With many of America’s seniors living on fixed incomes of less than $20,000 annually, beneficiaries simply can’t afford to pay more for needed healthcare coverage. We urge Congress to provide relief from the looming 2020 HIT before it’s too late. 2020 is just around the corner and seniors will be watching closely.

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The return of the 2020 HIT is ominous for every generation, but particularly so for millennials who face increasing financial pressures – the cost of student loans, starting a family, retirement planning and job changes in between new or transitional jobs. The HIT’s added costs – roughly $500 more in average premium costs in 2020 – offsets the financial stability these new employees are working hard to maintain.

The HIT is already forcing young entrepreneurs to make tough calls on their business. Take Nick Pappas who started his own small business in New Hampshire – with the HIT slated to take effect as part of insurance renewals this year, he will have to pay an additional $450 on average per employee.

“If the Health Insurance Tax (HIT) is not suspended by the end of the year, I may be forced to charge more for the services we provide which would put us at a competitive disadvantage with the larger companies who can better absorb this tax,” relayed Pappas.

Congressional leaders have introduced a range of bills to suspend this tax before it hits the pocketbooks of America’s small businesses. New Hampshire Sen. Jeanne Shaheen (D-NH) has joined a bipartisan group of senators including Sens. Cory Gardner (R-CO), John Barrasso (R-WY), Doug Jones (D-AL) and Kyrsten Sinema (D-AZ) in championing legislation (S. 172) to provide a 2-year suspension of the 2020 HIT and extend cost savings to small businesses throughout the country.

“This bipartisan bill will improve our health care law and help reduce expensive health insurance premiums, which are impacting Granite State small businesses and residents, and millions more across the country. Congress needs to work together and reach across the aisle to address the problems affecting our health care system, and this bill is an important step forward,” noted Sen. Shaheen.

Making HIT relief possible is essential to every generation and we urge Congress to prioritize bipartisan efforts in both the House and Senate by advancing S. 172 and H.R. 1398 – championed by Reps. Ami Bera (D-CA) and Jackie Walorski (R-IN) – within the coming weeks.

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In California, where small business owner Kasey Cotulla owns three printing companies and employs 100 individuals, the HIT directly undermines financial support for his employees and his future growth plans across communities within the state. Kasey is one of over 3.7 million small business owners in The Golden State who are disproportionately burdened by the 2020 HIT.

Indeed, the 2020 HIT could result in up to 23,300 fewer jobs within the state and a decline in the state’s GDP by up to $3.9 billion over a decade. For Kasey, the HIT presents a harsh reality. “Right now, I pay 80% of [my employees’] health insurance costs. So this tax costs my companies roughly $50,000 a year,” relayed Kasey. “Like everyone, we need to decide if we have to make employees pay more, or reduce benefits, or just not hire as many people.  None of those are good choices.  We need to delay – and eliminate if possible – the health insurance tax.”

Luckily for Cotulla and California’s small businesses, they have a strong champion within their state in Congressman Ami Bera (D-CA. Repeatedly, Rep. Bera has stood on the side of small businesses by working across the aisle to introduce or support bipartisan legislation that would provide much-needed relief to the country’s small businesses. In February, Rep. Bera introduced H.R. 1398, bipartisan legislation to delay the HIT for 2020 and 2021, saving up to $1,000 on average over two years for small business employees and their families.

“Failing to pass this bill, which would ensure the HIT is delayed for another two years, would cause millions of American families to see higher health insurance premiums,” noted Rep Bera. “In a time of rising premiums and health care costs, preventing the health insurance tax from adding to those costs is necessary as we work to stabilize the insurance markets and lower health care costs. We should pass this bill today.”

We urge Congress to prioritize HIT relief efforts in the coming weeks and support small business owners who need the certainty of legislative action to plan ahead for their future. The time is now – delay the 2020 HIT.

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The small business community has repeatedly stressed that rising health care costs are their No. 1 concern in managing their business. For small business owners and hardworking families already struggling to make ends meet, the return of the HIT in 2020 and its added cost is simply crushing.

Recently our Coalition spoke with small business owners in New Hampshire to discuss the real-life impact of the HIT on small businesses and the hard decisions they’re forced to make regarding employee benefits. For Sy Mahfuz, a third-generation small business owner, the HIT is making it difficult to provide affordable health coverage. “Taxing health insurance is only making life harder for small business owners across the state. With premiums constantly going up, it’s difficult to afford a quality health plan with coverage that protects employees from high out-of-pocket costs,” noted Sy.

Even for non-profit organizations trying to support individuals and communities in need, the added costs from the HIT pose a direct threat to the families they can help. Erika MacDonald, finance director of the Nashua Soup Kitchen and Shelter explained that the 2020 HIT “would cost us an additional sixty-five hundred dollars a year. To put that in perspective, that’s about one month of food and supplies we would otherwise be able to purchase to serve those in need.”

Within a state that boasts one of the first 2020 primaries, voters are keenly aware that Congress has more work to do. This sentiment is not concentrated solely among New Hampshirites, a recent national poll conducted by Morning Consult found that 2 in 3 adults are very concerned that if Congress does not delay the HIT, it could cost the average American family an additional $500 a year. Tom Boucher, owner of Great New Hampshire Restaurants urges action before impending policy renewals. “By suspending the health insurance tax in the past, Congress has already acknowledged the challenges with this tax. I hope they can come together in a bi-partisan way to suspend this tax again before it impacts our insurance premiums for next year,” relayed Tom.

We applaud our HIT champions in the House and Senate who continually support small businesses and hardworking families by working across the aisle to partner on bipartisan legislative efforts to repeal or delay the HIT during the 116^thCongress. Currently, there are four active bipartisan HIT relief efforts within Congress:

• S. 80 a full repeal bill championed by Senators John Barrasso (R-WY), Cory Gardner (R-CO) and Kyrsten Sinema (D-AZ);
• S. 172 a 2-year delay bill championed by Senators Cory Gardner (R-CO), John Barrasso (R-WY), Tim Scott (R-SC), Jeanne Shaheen (D-NH), Doug Jones (D-AL) and Kyrsten Sinema (D-AZ); and
• H.R. 2447 a full repeal bill championed by Representatives Anthony Brindisi (D-NY) and Kenny Marchant (R-TX)
• H.R. 1398 a 2-year delay bill championed by Representatives Ami Bera (D-CA-7), Josh Gottheimer (D-NJ-5), Jackie Walorski (R-IN-2) and Kenny Marchant (R-TX-24).

Relief from the looming HIT is critical and must be top of mind for Congress, just as it is for the millions of hardworking small business owners and their employees throughout the country who are asking for relief now, once and for all.

The post Congress, “Suspend This Tax Again” appeared first on Stop the HIT.

One pressing cost challenge facing Barbara and her company, B&M Construction, Inc., is the return of the ACA’s health insurance tax (HIT). Absent immediate Congressional action to suspend the tax in the next several weeks, Barbara will face more than $400 in additional costs for each family that she covers – a cost that undermines her goal of strengthening her company and employee benefits for those on the frontline of serving Colorado businesses and customers.

Barbara Myrick, Owner of B&M Construction, Colorado Springs, Colorado

“For a small construction company like mine, the health insurance tax will significantly impact how we offer our health care package,” Barbara said. “This tax will influence how we provide raises, bonuses, and other benefits, not to mention business investments.”

Already, policymakers on both sides of the aisle are pushing for legislation that would suspend or repeal the tax entirely. Sen. Cory Gardner has taken a leading role in building bipartisan support for suspending the HIT before it adds to the cost of coverage for the nation’s small businesses, including those in Colorado. Sen. Gardner lead the introduction of S.172, the Health Insurance Tax Relief Act, which would suspend the tax for two years, providing more than $1,000 on average in savings on health insurance premiums for small businesses across the country.

“Without Congressional action, the Health Insurance Tax will impose fees on nearly 142 million American’s health care coverage in 2020,” said Senator Gardner. “I’m proud to lead this bipartisan legislation that will make sure Americans are not forced to needlessly pay even more for their health insurance at a time when health care costs continue to rise.”

With the deadline quickly approaching for small businesses to renew coverage for 2020, it’s now critical that House and Senate leaders take immediate action to suspend the HIT before it drives up the cost of insurance. Small business owners like Barbara are waiting for Congress to protect the millions of employees who are depending on this relief the most.

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Ahead of the return of the 2020 HIT, small business owners and hardworking families are urging policymakers to suspend the estimated $16 billion tax before it drives up the cost of their insurance.“In a few months, I will be renewing my health care coverage for 2020, noted Coughenour from Iowa’s 3^rd Congressional district. Unfortunately, this means higher costs next year due to the health insurance tax, or HIT tax, unless Congress votes to delay the HIT. There is currently bi-partisan legislation that has been introduced to delay this harmful tax, and I urge Congress to pass it quickly. It’s been delayed before and it can and should be done again, so small business owners like myself won’t continue to be crushed by rising health care costs.” 

Congress can take action now to protect small businesses before the June deadline when the HIT must be factored into insurance premiums. Already, bipartisan legislation introduced in both the House and Senate would suspend the HIT for two years providing small businesses, like Wanderlust, with essential stability and certainty for their future growth.

As policymakers look to protect America’s small businesses, it starts by suspending the HIT once and for all.

The post Iowa Small Business Owner Says Congress Can and Should Delay the HIT appeared first on Stop the HIT.

Year-over-year premium increases add up for small business owners like Terry Thorne who runs The Thornewood Inn in Massachusetts. The HIT directly limits Terry’s ability to provide employee benefits such as a health coverage and hire additional employees or expand his business. “The HIT is expected to raise premiums by hundreds of dollars per employee in 2020 alone,” noted Thorne. “When you already pay so many expenses, a few hundred dollars extra here and there has a way of adding up until you can’t run a business at all! There’s only so much you can spend before you’re out of business.”

Throughout the country small business owners are struggling with how to support their employees while still making ends meet as a result of the increased cost of the HIT. Andrew Graham, a small business owner in Colorado shared how the HIT impacts his 60 employees and his business. “If the health insurance tax returns in 2020, it will cost me an extra $25,000” said Graham.

Lois Campbell, a small business owner in Minnesota, has seen firsthand that the rising cost of coverage means she can no longer offer the same type of benefits to her employees. Campbell lamented that, “when health coverage costs increased due to the HIT, we finally just couldn’t afford it…Small businesses like ours need premiums to go down, not up due to the HIT! Every extra dollar small businesses have to pay out makes it less likely that they’ll be able to continue.”

The small business community knows the clock is ticking for Congress to provide HIT relief. That’s why they are urging Congress to prioritize efforts in both the House and Senate to delay or repeal the 2020 HIT. Recently, Antonio Collins, a small business owner in Iowa, called on Congress to continue the HIT suspension moving forward. “Members of Congress must accept that the health insurance tax was a mistake. The best thing to do is keep the tax on hold. They successfully passed a moratorium for 2019, so it should be possible to do the same for 2020. With insurance rate approval season bearing down, however, they need to act right away to protect entrepreneurs and families,” commented Collins.

Currently, there are three bipartisan legislative efforts in the 116^thCongress:

• S. 80 a full repeal bill championed by Senators John Barrasso (R-WY), Cory Gardner (R-CO) and Kyrsten Sinema (D-AZ);
• S. 172 a 2-year delay bill championed by Senators Cory Gardner (R-CO), John Barrasso (R-WY), Tim Scott (R-SC), Jeanne Shaheen (D-NH), Doug Jones (D-AL) and Kyrsten Sinema (D-AZ); and
• H.R. 1398 a 2-year delay bill championed by Representatives Ami Bera (D-CA-7), Josh Gottheimer (D-NJ-5), Jackie Walorski (R-IN-2) and Kenny Marchant (R-TX-24).

It is critical that HIT relief be extended so small businesses and middle-income families can plan ahead for their future. Join our coalition along with the millions of small business owners and their employees throughout that country that are calling on Congress to #StopTheHIT and extend HIT relief into 2020 and beyond.

The post Small Business Community Urges Congress to Prioritize HIT Relief appeared first on Stop the HIT.

Absent immediate Congressional action, the 2020 HIT will return on January 1^st to begin driving up the cost of care for those who can least afford it. For small businesses, families and Medicare Advantage Seniors, the 2020 HIT will add an estimated $16 billion to their cost of coverage. This increase is simply crippling, worst of all half of the entire tax hike is paid for by those making between $10,000 – $50,000.

These individuals need relief, that’s why the Stop The HIT Coalition and our members have been fighting for HIT relief since our formation in May 2011. Together, we’re advocating for America’s nearly 29 million small businesses and their almost 57 million employees as well as 23 million employees covered by their employer. Our members are actively engaged on this issue on Capitol Hill and through grassroots efforts across the country, diligently amplifying the voices of those hardest hit and further calling on Congress to advance legislation to either suspend or repeal the HIT.

The National Association of Manufacturers (NAM), a Stop The HIT Coalition member, has a petition asking their members to “stand with middle class families and stop the job-killing Health Care Taxes.”

The National Association of Women Business Owners (NAWBO), sent letters of support to  Senators John Barrasso (R-WY), Cory Gardner (R-CO), Jeanne Shaheen (D-NH), Doug Jones (D-AL), Tim Scott (R-SC) and Kyrsten Sinema (D-AZ) applauding  their bipartisan efforts to provide HIT relief with the introduction of S. 172 a 2-year suspension bill sponsored by Senator Gardner and S. 80 a full repeal bill sponsored by Senator Barrasso.

NAWBO’s National Board Chair, Molly Gimmel wrote:

Center Forward, a non-partisan advocacy group, recently developed an issue brief on the Health Insurance Tax’s impact to consumers which, if not suspended or repealed, will translate to an estimated 2.2 percent premium increase in 2020.

It is clear that action is needed now before rate filings happen in early June. Small business owners need the certainty that can only come with relief. Join us in calling on Congress to #StopTheHIT in 2020 and beyond. Contact your Congressional Representative and Senator through Facebook or Twitter and urge them to co-sponsor S. 172, S. 80 and H.R. 1398. If they’re already a co-sponsor, make sure to thank them for standing on the side of small business and fighting to #StopTheHIT.

The post Support for HIT Relief Continues to Build appeared first on Stop the HIT.

For middle-class families across the country, rising health care costs present a difficult challenge. While the reasons for those costs are many, one factor is the plethora of taxes in Obamacare (also known as the Affordable Care Act, or ACA). Today, I am offering some thoughts on the needless health insurance tax (or HIT) that adds costs for roughly 140 million Americans because of how they receive insurance—usually employees and dependents at small businesses, people who buy individual plans and Medicare beneficiaries to name a few. Manufacturers are no exception.

Going into 2019, a welcome, one-year suspension of the HIT will provide some measure of relief from this onerous tax’s effects on individuals and families. However, Congress needs to go further and suspend this burdensome tax into 2020 and beyond. The good news is the House already passed legislation in July that would do just that; now it’s time for the Senate to do its part to delay the tax beyond 2019.

Here are five reasons why the HIT matters:

1)     The HIT increases premiums, and a delay will lower costs for individuals and families directly, representing close to $500 of savings for a family of four and between $200 and $300 for individuals.

2)     Benefits planning for future years starts now. What is decided in 2018 and 2019 will shape premium costs in 2020 because insurance professionals who design plans have to factor a presumed obligation to pay the HIT and cannot assume Congress will do away with the tax despite its unpopularity. Acting now to suspend the tax further into the future helps rein in additional costs and provides planning certainty, especially for companies that sponsor health coverage for employees. For example, temporary relief from the HIT in 2019 will drive down the average Medicare Advantage premium cost for the year.

3)     Voters across the board don’t like or want the government to collect taxes off their health care—period. Seven in 10 Americans say they oppose the HIT, and 57 percent of Americans want the tax to go away altogether. The HIT is just a sales tax on health coverage and only adds costs, transferring billions from working people and retirees to the government. It is a textbook example of an unfair tax.

4)     Health care beneficiaries are consumers too, yet the tax is punitive and does not improve health care affordability or reward consumers for making good health care choices. It is unusually structured for a tax—allowing the tax to rise along with premiums—making it onerous for consumers on both sides of the equation.

5)     HIT relief is bipartisan. Past votes in Congress to delay or repeal the HIT have garnered as many as 350 Democrat and Republican Members alike at a time when cross-party voting is unfortunately much less common these days. Sensible Republicans and Democrats agree that a HIT delay is good policy, which is why it’s welcome to see lawmakers come together to scrap this bad tax.

When Congress returns to Washington, D.C., in November, they must help manufacturers by advancing bipartisan, health care reforms.

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