May 01, 2019
Bipartisan lawmakers in the House and Senate have introduced bills to delay the Health Insurance Tax until 2021. Under the ACA, all carriers that offer fully insured health insurance must pay an annual fee – the so-called “Health Insurance Tax.” The tax was designed to help fund state and federal marketplace exchanges. It was suspended through 2019, but is scheduled to kick off in January 2020.
“Immediately repealing or delaying the Health Insurance Tax before rates are submitted and finalized will help ensure that Americans have more choices, improved benefits, and more affordability for 2020,” according to a statement by America’s Health Insurance Plans (AHIP).
If the Health Insurance Tax is not suspended for 2020, 142 million consumers will experience higher premiums, according to an analysis by Oliver Wyman. The estimates are:
- $196 for individuals who buy coverage in the individual market
- $479 for small business employees enrolled in family coverage
- $458 for family coverage in the large group market
- $241 for Medicare Advantage enrollees
- $157 per enrollee in state Medicaid programs
Also, the Joint Committee on Taxation estimates that the health insurance tax will exceed $100 billion over the next 10 years.
The Health Insurance Tax Relief Act (H.R. 1398) was introduced by Representatives Jackie Walorski (R-Ind.), Ami Bera (D-Calif.), Kenny Marchant (R-Texas), and Josh Gottheimer (D-N.J.) The Jobs and Premium Protection Act (S. 80) was reintroduced by Senators John Barrasso (R-WY), Cory Gardner (R-CO), and Kyrsten Sinema (D-AZ).
At LISI, we are following important legislation that affects our industry. Contact your Regional Sales Manager for questions and updates.
