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.

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.

According to AHIT unless this tax is repealed, next year an average family will pay over $300 in higher premiums, seniors enrolled in Medicare Advantage will face $220 in reduced benefits and higher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.

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.

Sources:
The Library Of Congress – H.R. 1370
America’s Health Insurance Plans (AHIP)
NFIB

By Jack River