Op-ed that ran in North Dakota’s The Jamestown Sun on February 28, 2017.
Repeal health insurance tax
By Andy Peterson, Bismarck
Congress is taking on the important work of improving our nation’s health care system. All indications are that the process of replacing or repairing the Affordable Care Act will take several months. Regardless of the time it takes to put a new or revised law together, it’s crucial that our elected representatives look at what reforms can be done now to support local businesses, workers and their families.
One issue that needs immediate attention is the health insurance tax, known as the “HIT.” This misguided tax took effect as part of the ACA, and it’s had the unintended consequence of driving up health care costs for small businesses and middle-class families.
Eliminating this burdensome tax would benefit thousands of North Dakota small businesses and their employees. That’s because, for independent business owners who purchase for their families as well as for those who offer health care benefits to employees, the health insurance tax has substantially increased costs. Simply put, this tax makes it harder for people to find affordable coverage or purchase the plan they need at a cost that doesn’t break the bank.
Recognizing the harm this tax caused, Republicans and Democrats came together more than a year ago and passed a temporary suspension of the health insurance tax. This short health insurance tax moratorium gave small businesses some breathing room and bought Congress time to formulate a long-term solution. Now we’ve reached the point where the rubber meets the road for Congress to come up with permanent relief.
Although the suspension of this tax officially extends until the end of 2017, the effects of its return are being felt now as many employers renew their health insurance policies. As they compare prices and pay the 2018 premiums, they are once again seeing the unaffordable costs of
the health insurance tax rolled in. Making the situation worse, health care costs have become unpredictable, and small businesses are struggling to cope.
Their natural impulse is to tighten the belt. With a large cost like the health insurance tax on the horizon, businesses are likely to cut back on hiring, raises, bonuses and other expenses. Such decisions have ripple effects that reach all North Dakota communities.
For North Dakota’s families, this translates into greater hardship. Job seekers find fewer opportunities. And employees share too much of the cost burden for health care, whether in paycheck deductions or more expensive co-pays.
Changes to the ACA will take time and require extensive negotiation. However, eliminating the health insurance tax can be achieved immediately. What’s more, it would provide an urgent boost to North Dakota’s businesses and some degree of certainty.
Fortunately, there is a bipartisan bill in the U.S. House to repeal the health insurance tax. Now we need an equally forceful move in the U.S. Senate.
Sens. Heidi Heitkamp, D-N.D., and John Hoeven, R-N.D., have always been strong advocates for working families and small businesses in our state. We encourage them to take on the bipartisan cause of repealing the health insurance tax. North Dakota’s businesses and working families will be better off if they do.
Peterson is president of the Greater North Dakota Chamber
http://www.jamestownsun.com/opinion/4226313-repeal-health-insurance-tax