Press Release

Stop the HIT Coalition Encouraged by Representatives Boustany and Bera’s Efforts to Delay the Health Insurance Tax

WASHINGTON, D.C. (Oct. 29, 2013) – The Stop the HIT Coalition, a broad-based group representing the nation’s small business owners, their employees and the self-employed, today thanked Congressman Charles Boustany (R-LA) and Congressman Ami Bera (D-CA) for their efforts to protect small businesses from higher health care costs by introducing the Small Business and Family Relief Act. This legislation would provide immediate relief from the small business health insurance tax (HIT).

“While we will continue to fight for full repeal of the HIT, any relief from its damaging effects is encouraging for small business owners and their employees who are facing higher health insurance costs,” said Kevin Kuhlman, Manager of Legislative Affairs for National Federation of Independent Business, a leading Stop the HIT Coalition member. “The President and Congress have shown a willingness to work with other groups to blunt the impact of the health care law. Small businesses and their employees expect the same consideration.”

The HIT is an often-overlooked aspect of the Patient Protection and Affordable Care Act (PPACA) that taxes health insurance policies purchased on the fully-insured market – the marketplace where 88 percent of small businesses and individuals buy insurance. Over the next decade, the HIT is expected to affect 34 million Americans and cost the average family $5,000. Labor unions and large corporations are largely exempt from the tax.

“For those small business owners who have already purchased their health care plans for 2014, it is also encouraging that this legislation would require insurers to amend their rates as a result of the delay and provide those consumers with rebates or credit toward future payments,” Kuhlman continued. “This will provide a much-needed level of certainty for millions of Americans who are calculating their future health insurance costs and is a good first step toward eliminating this devastating tax.”

Legislation to repeal the HIT has been introduced in both houses of Congress. S. 603 and H.R. 763 combined have more than 200 bipartisan cosponsors.

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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.