Another
Pending Tax From The Affordable Care Act |
Starting in 2014 a new Health Insurance Tax (HIT) to the
tune of $101.7 billion dollars over 10 years goes into
effect on all businesses.
However, according to the organizations such as the
NFIB
and the
America’s Health Insurance Plans
(AHIP)
this tax will disproportionately hurt small businesses.
This tax is larger
than the medical device tax and the prescription drug tax
combined.
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In an effort to stop this from going into effect a
bipartisan effort is being made by two congressmen,
Representatives Charles Boustany (R-LA)
and
Jim Matheson (D-UT).
Together they have introduced H.R. 1370 to remove
this pending burden on small businesses.
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According to AHIT unless this
tax is repealed, next year an average family will pay over
$300 in higher premiums, seniors enrolled in Medicare
Advantage will face $220 in reduced benefits and higher
out-of-pocket costs, and state Medicaid managed care plans
will incur an additional $80 in costs for each person
covered. At a time when many families are struggling due to
the weak economy, this tax will mean less money to pay the
bills or save for retirement or a child’s education.
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According to the
NFIB
small businesses already pay an average of 18 percent more
than larger entities. With insurance costs for small
businesses increasing 96 percent since 2002, levying this
kind of tax would adversely affect job creation and economic
growth. The
NFIB
strongly supports the effort to remove this tax on small
businesses.
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See more ACA news. |
Sources:
The Library Of Congress – H.R. 1370
America’s Health Insurance Plans (AHIP)
NFIB
By Jack
River
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