The Stop the HIT Coalition
, of which ABC is a member, March 19 sent a letter
to members of the U.S. Senate offering support for the Jobs and Premium Protection Act of 2013, introduced by Sen. John Barrasso (R-Wyo.) and Sen. Orrin Hatch (R-Utah), that would repeal the health insurance tax (HIT) provisions in the Patient Protection and Affordable Care Act.
The second letter echoed a letter sent by the coalition in February
, which cited information confirming that the tax will be a bad deal for small business.
Under the HIT, which is scheduled to go into effect in 2014, a fee will be assessed on health insurance companies – almost all of which will be passed onto consumers in the fully insured marketplace, where nearly all small businesses and the self-employed purchase their coverage.
As the coalition pointed out, the HIT will result in the collection of $8 billion in 2014, and that number will reach $101.7 billion in the first 10 years.
“The employer community has historically had two major concerns related to health insurance, cost and availability,” the letter stated. “As the HIT increases the cost of health insurance for small business, it should be repealed. The nation’s millions of small business owners, workers and the self-employed deserve no less.”