June 4, 2019 1:10pm
GLI voices support for the Health Insurance Tax Relief Act
GLI is urging members of the Greater Louisville congressional delegation to support legislation that would further delay implementation of the Health Insurance Tax, also known as HIT. This tax was one of several imposed by the Affordable Care Act to fund many of the law’s programs. Congress has successfully delayed its implementation on several occasions—and for good reason. HIT has a projected price tag of about $15 billion nationwide and would cost on average $500 per employee. Health care is already a massive expense for businesses—especially small businesses. HIT would drive up costs even more.
GLI has long advocated for a repeal of HIT and supports efforts to further delay its implementation. Under current law, HIT is scheduled to go into effect at the start of next year, unless Congress acts quickly. Legislation in Congress has been filed that would delay implementation until 2022: The Health Insurance Tax Relief Act. Today, GLI sent letters to members of the Greater Louisville congressional delegation urging them to support this important legislation.
Read the full letter:
On behalf of Greater Louisville Inc., The Metro Chamber of Commerce, we write to urge your support of S. 172, The Health Insurance Tax Relief Act. This bipartisan legislation would delay implementation of the Health Insurance Tax, or HIT, which was established by the Affordable Care Act. We encourage you to join the 25 supporters of S. 172 in the Senate by signing on as a cosponsor of this bill.
The Health Insurance Tax Relief Act addresses one of the major concerns that business owners have related to health insurance: cost. HIT increases health insurance costs by imposing a levy on the net premiums of health insurance companies, which is then passed on to consumers, including both employers and employees.
Currently, relief from HIT has been extended to December 31, 2019, but since the cost of HIT increases year-over-year, Americans will face an even higher HIT impact on premiums in 2020. This delay is needed to provide stability to business owners and workers so that they can continue to access health insurance coverage. The Health Insurance Tax Relief Act would simply delay implementation of HIT until December 31, 2021.
Giving employers and workers additional relief from HIT is a top priority for the Greater Louisville business community. We strongly urge your support for The Health Insurance Tax Relief Act.