Washington, D.C.—In a new letter to House Speaker Nancy Pelosi and House Minority Leader Kevin McCarthy, a bipartisan coalition of over half of the House Freshman class, urged House leadership to include a delay of the “Health Insurance Tax [HIT] for 2020 and 2021 in legislation that must pass before the end of the year.” The letter highlights the immediate impact that HIT relief could have in helping “deliver lower health care costs to millions of Americans across the country.”
The Health Insurance Tax—or HIT—is a costly, unfair and hidden tax that increases the cost of health insurance in the small business market and needlessly stifles economic growth. In 2020 alone, the HIT would result in a premium increase of $479 for families with small group coverage and $458 for families with fully insured large group coverage.
In a recent poll from Morning Consult, two in three adults say that American families cannot afford a near $500 increase in their health care costs, and a majority of Republicans, Democrats and Independents oppose the added tax on their premiums.
To protect millions of small business employees and their families, Rep. Anthony Brindisi (D-NY), Rep. John Joyce (R-PA) and 49 other House members urged House leadership to ensure Congressional action to stop the exorbitant cost increase facing hardworking Americans. The letter notes that, “as Congress considers policies to bring down health care costs, acting immediately to extend a moratorium on the HIT for 2020 and beyond is a step Congress can take now to protect individuals and families, seniors and small businesses from higher health care costs.”
“We commend Rep. Brindisi, Rep. Joyce and their bipartisan House colleagues for standing up in support of more than 142 million small business employers, seniors, Medicaid beneficiaries and consumers who will bear the brunt of this tax in 2020 and beyond,” Elena Tompkins, Executive Director of the Stop The HIT Coalition, said. “Their leadership reflects a commitment to addressing soaring health care costs, and it’s critical that Congress take action to protect small businesses and consumers moving forward.”
Bipartisan support for suspending the HIT in both the House and the Senate continues to grow. In the House alone, legislation to repeal (H.R.2447) and/or suspend (H.R.1398) the tax has more than 140 co-sponsors and growing.
To view the full letter, click here