WASHINGTON, DC – New York Farm Bureau President Dean Norton of Elba asked members of the House Small Business Committee Thursday to support the repeal of the Health Insurance Tax (HIT Tax).
Testifying before the Subcommittee on Health and Technology, he said the Affordable Care Act’s annual fee placed on health care company premiums on the fully insured market will likely be passed on to consumers when it is implemented next year. That would make it more costly for his family’s dairy farm and trucking company in Elba, New York to provide important health benefits for their employees.
“The HIT tax will hurt the very people this was intended to help. It means that it will be harder for farmers to afford health care for our families and our employees,” Norton said.
According to the Joint Committee on Taxation, the HIT tax will further increase family premiums by $400 or 2.5 percent in the year 2016. In all, it is expected that the HIT Tax will cost consumers $100 billion over the next 10 years…and that is a hit farmers, other small businesses, and hardworking Americans cannot afford. Norton testified that because of already rising health insurance costs, it was necessary for his family’s farm to significantly change the cost structure from covering about 90 percent of the insurance cost to approximately 50 percent at this time through a high deductible plan.
“Unfortunately, the people who are really hurt by this change are the employees. They now have to contribute a larger portion of the expense when they seek medical attention and I think we all know that this can be a disincentive for workers to seek care in some instances,” Norton said.
Norton added that being able to offer health insurance is important to his farm as they strive to offer benefits that attract high quality workers and to keep them healthy and productive once they are on the payroll.
Dairy farming is a naturally volatile business that must attempt to balance fluctuating milk prices, high feed and fuel prices, and the impacts of Mother Nature. Higher health insurance premiums that would easily cost his farm thousands of more dollars would only make it more difficult to operate his business. This is why he is asking lawmakers in Washington for some much needed relief and to repeal the HIT Tax.
“It is very important we are able to offer reasonable health insurance if we are to obtain the workers we need to stay in business. Just as important, it is good for our employees, their families and our communities,” testified Norton.
A full copy of President Norton’s written testimony can be found here: http://nyfb.org/img/uploads/file/Testimony_Dean_Norton-HIT_Tax-5-09-13.pdf