On Feb. 13, Rep. Charles Boustany (R-La.) and Rep. Kyrsten Sinema (D-Ariz.) introduced
the Jobs and Premium Protection Act (H.R. 928), which would fully repeal the health insurance tax (HIT) provision in the Affordable Care Act (ACA). The ABC-supported coalition, Stop the HIT, sent a letter
commending Boustany and Sinema for coming together to repeal the burdensome tax.
This new tax falls on the fully insured market, where 90 percent of small business owners purchase insurance for their employees and themselves. The tax increases over time, which will force premiums to increase, creating a costly burden on small businesses, the primary source of job creation for the U.S. economy. In 2014, this tax cost small businesses $7 billion and is expected to rise to $14 billion in 2018 and $20 billion in 2025 according to the Congressional Budget Office’s economic outlook.
Reps. Boustany and Sinema argue that repealing the tax would bring consumers savings in the form of lower insurance premiums and out-of-pocket costs.
The coalition letter points out that the Joint Committee on Taxation estimated that eliminating the HIT could decrease the premium for the average family by $350 in 2016.