For Iowa small businesses and their employees, the return of the Health Insurance Tax (HIT) in 2020 will mean more than $400 in added costs to their insurance. Jennifer Coughenour, owner of Wanderlust Fashion in Des Moines, has established one of the city’s must-visit boutiques, yet faces the inevitable trade-off between providing quality, affordable health benefits to her employees and continuing to invest in the strong growth of her woman-owned and led-company.
Ahead of the return of the 2020 HIT, small business owners and hardworking families are urging policymakers to suspend the estimated $16 billion tax before it drives up the cost of their insurance.“In a few months, I will be renewing my health care coverage for 2020, noted Coughenour from Iowa’s 3rd Congressional district. Unfortunately, this means higher costs next year due to the health insurance tax, or HIT tax, unless Congress votes to delay the HIT. There is currently bi-partisan legislation that has been introduced to delay this harmful tax, and I urge Congress to pass it quickly. It’s been delayed before and it can and should be done again, so small business owners like myself won’t continue to be crushed by rising health care costs.”
Congress can take action now to protect small businesses before the June deadline when the HIT must be factored into insurance premiums. Already, bipartisan legislation introduced in both the House and Senate would suspend the HIT for two years providing small businesses, like Wanderlust, with essential stability and certainty for their future growth.
As policymakers look to protect America’s small businesses, it starts by suspending the HIT once and for all.