Birmingham, AL – Alabama small business leaders met today at the office of the Associated Builders and Contractors of Alabama in Birmingham to discuss the impact of the 2020 health insurance tax, or HIT, on small businesses, their employees, seniors on Medicare and middle-income families. Small businesses leaders expressed concerns about the impact of the HIT on Alabama small businesses, their employees and the self-employed if the tax is not delayed by the end of this year.
Alabama’s Senator Doug Jones recently signed onto a bipartisan letter asking Senate leadership to delay the HIT tax for 2020.
“Lowering the cost of health insurance is an important priority for me. That is why I support efforts to extend the suspension of the Health Insurance Tax for an additional year, which will lower premiums for small businesses, individuals, and seniors receiving coverage through Medicare Advantage,” said Senator Doug Jones.
The HIT is a federal sales tax on health insurance plans purchased by small business owners, the self-employed, and workers who receive their health care coverage through an employer. Without action by Congress this year to delay the tax for 2020, Alabama small business owners and seniors on Medicare will be hit with higher health insurance premiums as they renew their coverage next year.
“This roundtable was an opportunity to hear from other local business owners about how delaying the HIT tax will positively impact business in the state,” said Tim Hightower, owner and president of Southern Carpet, Hardwood & Tile and Associated Builders and Contractors board member. “Construction is a major industry in the state, so we appreciate Senator Jones’ support of extending the health insurance tax moratorium through 2020 and know that this effort will contribute to a thriving Alabama business environment in the coming years.”
Alabama is home to more than 392,930 small businesses, which employ more than 775, 820 Alabama workers. A study by Oliver Wyman shows that Alabama families in the small employer market could be faced with $446 on average in higher premiums in 2020 as a result of the HIT. The tax is estimated to disproportionately impact 142 million Americans, particularly those earning an income between $10,000 and $50,000.
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The Stop The HIT Coalition represents the nation’s small business owners, their employees and the self-employed who are actively working to repeal the Health Insurance Tax. Since the Coalition’s formation in 2011, it has grown to include more than 35 national organizations, representing millions of small business owners across the country. For more information, please visit www.StopTheHIT.com.