Both employers and their employees will be paying more for healthcare unless Congress pumps the breaks on the Health Insurance Tax (HIT). Imposed by the Affordable Care Act, the HIT is set to go into effect for 2019 unless Congress agrees to delay it through 2020.
Last week, the U.S. House of Representatives voted to extend the existing moratorium on the HIT. The Buffalo Niagara Partnership supports this extension and urges the U.S. Senate to follow suit by voting to delay the implementation of the HIT. If Congress fails to act and the tax is reinstated, New York’s families and small businesses will suffer.
The HIT requires all insurers offering fully-insured coverage to pay an annual fee. It is estimated that the HIT would increase health insurance costs for small business owners by $530 annually for each person they employ. According to the National Federation of Independent Business, the HIT will reduce future private sector job creation by 125,000 positions – the majority of which would have been through small business growth.
The financial burden imposed by the HIT would inevitably be passed on to individuals and families. The National Association of Health Underwriters projects that the HIT would increase premiums for individual coverage by an average of $2,150 and family coverage by an average of more than $5,000 over a ten-year period.
Delaying the implementation of the HIT will prevent unnecessary healthcare cost increases while lawmakers work towards a sustainable and permanent solution to this issue. The Senate must now act to prevent this job-killing tax from hitting employers and their employees.