The National Association of Health Underwriters (NAHU), a Stop the HIT Coalition member representing health insurance agents, brokers, consultants and other large and small employers, believes that to minimize health premium increases we must repeal the health insurance tax (HIT) included in the Patient Protection and Affordable Care Act (PPACA). NAHU CEO Janet Trautwein discussed the premium hikes its members would face as a result of the HIT in the Sun Sentinel, noting it would “exacerbate the upward swing in premiums that has been going on for years.”
While the HIT is levied directly on insurance providers, the majority of the burden will be on small businesses. Trautwein noted that these businesses will pay an additional $2,800 per individual they insure in the small group market, and Rep. Jim Matheson (D-UT) confirmed this increase in an interview with Washington Post. According to Rep. Matheson, “It isn’t really taxing the insurance companies, it’s taxing the people paying the premiums, and in this case, that’s small business owners.”
The impact on small businesses is significant. In total, the HIT will cost more than $100 billion in the first 10 years, falling directly on the small business community. In fact, 88 percent of small businesses insure on the fully-insured marketplace and will be impacted by the tax.
The good news is that Congress is feeling pressure from small employers across the country. Their voices have been heard. As a result, legislation in the House to repeal the HIT has more than 218 co-sponsors, which secures its passage, and the companion Senate bill has 23 co-sponsors. As House Small Business Committee Chairman Rep. Sam Graves (R-MO) said after a hearing discussing the tax, “We keep hearing from small businesses; that they’re premiums keep going up, keep going up, and now this thing’s coming along, and they’re going to go up even more. That’s the reason you’re hearing so much about this tax and why you’re seeing such bipartisan efforts to repeal it.”
Small businesses like the ones represented by NAHU face an array of challenges every day. Worrying about the cost of providing health care to their employees shouldn’t be one of them. Visit our website and use our map feature to see if your Member of Congress supports small business and has co-sponsored H.R. 763 or S. 603 to repeal the HIT.