Gearing for a fight
As more pieces of the Affordable Care Act (ACA) went into effect in 2014, many employers faced higher health insurance premiums and, in some cases, fewer coverage options. One factor contributing to the increased cost of health insurance is the Health Insurance Tax (HIT), one of numerous new taxes authorized by the ACA. NRCA is working to get Congress to delay and ultimately repeal this burdensome tax.
Stop the HIT
Originally messaged by the Obama administration as a "fee" placed on insurers, the HIT is a tax passed on in the form of higher premiums for health insurance policies sold on the fully insured market, the source of coverage for most small and mid-sized businesses. According to the nonpartisan Congressional Budget Office, the HIT will collect $8 billion in revenue during 2014 then increase nearly 40 percent during 2015 to more than $11 billion and continue to increase in the years to come.
Self-funded health plans established by labor unions and large corporations are not affected by the tax, leaving the burden to fall almost solely on small businesses, the sector responsible for more than 90 percent of all new U.S. jobs, according to the Small Business Administration.
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