Across the country, millennials are disrupting modern business like never before. From their push towards open office spaces and flexible work schedules to their integrated approach to technology as part of the new “9 to 5”, millennials have transformed businesses large, small and everywhere in between. It’s no surprise that this group places a disparate value on what matters most to their future business endeavors. Unfortunately, the return of the 2020 Health Insurance Tax (HIT) will undermine this generation’s entrepreneurial spirit across the country’s up-and-coming small businesses and their employees.
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.