A new report released last week by actuarial firm Oliver Wyman spurs a renewed call for relief from the Health Insurance Tax (HIT) for the 142 million Americans who are forced to pay higher insurance premiums as a result of this misguided tax. Absent Congressional action to delay the HIT for 2020, over 14 million small business employees and their families could miss out on crucial cost savings when the $20.3 billion tax returns.
The financial and cost pressures facing small businesses continue to mount as the HIT jeopardizes long-term stability for millions. Suspending the HIT would provide a common-sense solution to deliver cost-savings to the families who need it most. According to Wyman’s latest analysis, small business employees and their families could benefit from premium relief in 2020, specifically:
- In Alaska, families would save nearly $740 on average in premium costs in the small group market;
- In New York, small business employees and families would see cost-savings of over $650 on average in the small group market;
- Delaware families would save $575 when purchasing family coverage within the small group market;
- West Virginia small business employees and families purchasing within the small group market could save $570 on average; and
- In New Jersey, families would see an average of $565 in cost savings when purchasing coverage in the small group market;
Already, Congressional leaders are taking a stand to urge action on HIT suspension moving forward. Recently, U.S. Representatives Josh Gottheimer (D-NJ) and John Katko (R-NY) submitted a bipartisan op-ed to The Hill calling on their colleagues to work together to “reduce health care costs and increase coverage options so that more families and small businesses can thrive. Taxing health care premiums and sticking our country’s small businesses and seniors with the bill is not the answer.”
Further, broad, bipartisan support for HIT relief extends throughout the country and on Capitol Hill. Since 2015, Congress has repeatedly suspended the HIT for 2017 and 2019. Already, the U.S. House of Representatives passed bipartisan legislation to delay the HIT for 2020. With Congress back in session, STH Senate action is needed on bipartisan legislation that has already been introduced to ensure cost savings are realized for individuals and families suffering under the weight of this regressive tax.
Congress, don’t leave small businesses holding the bill for higher healthcare costs in 2020 and beyond.