Say no to Health Insurance Tax
Published 7:00 pm Wednesday, December 18, 2019
Congress could give Americans a great Christmas gift this year by eliminating or extending the moratorium on the horrendous Health Insurance Tax.
The Health Insurance Tax, which is essentially a sales tax on health coverage, is on a one-year moratorium. But if Congress doesn’t either extend it or eliminate it before Dec. 31, Americans will see their health care costs go up Jan. 1, according to Citizens Against Government Waste, a nonpartisan government watchdog group.
HIT is a product of the Affordable Care Act, otherwise known as Ombacare, which was a big hit on consumer pocket books because it significantly increased the cost of health care coverage.
If HIT goes back into effect Jan. 1, 142 million consumers will be impacted, according to the watchdog group.
There will be an estimated $196 annual increase for individuals; a $241 increase for Medicare Advantage recipients; a $458 increase for those with family coverage in the large group market.
Also, the increase cost will be $479 annually for small business employees with family plans. In addition, half the tax is also paid by lower-income families earning between $10,000 and $50,000. So, in total, it is estimated that HIT will cost consumers around $16 billion annually, raising costs to more than $260 billion over the 10-year window.
There are four bipartisan bills in Congress that address this horrendous sales tax on health care. S. 180 in the U.S. Senate and its companion bill, H.R. 2447, in the U.S. House of Representatives would eliminate the tax entirely.
Two other bills, S. 172 and H.R. 1398, would extend the moratorium for another two years. CAGW said that would be equally acceptable and probably the most likely to pass Congress.
In either case, people who don’t want to see the health care sales tax go back into effect Jan. 1, should contact their senators and representative in Congress to ask for an elimination or extension of the moratorium on this horrendous sales tax.
It would be a great Christmas gift for Americans, and an easy thing for Congress to do.
