Capitol Hill

Stop the HIT Building support for repeal of the health insurance tax

The Patient Protection and Affordable Care Act (PPACA), enacted by Congress in 2010 as President Obama's signature legislative achievement, remains highly controversial and has significant implications for employers, including roofing contractors, as well as the U.S. economy. As such, NRCA continues working on PPACA-related issues in the regulatory and legislative arenas.

One area of focus is developing support within Congress for legislation to repeal the new health insurance tax (HIT) created by PPACA. This tax is one of the law's more egregious provisions from the perspective of small and mid-sized businesses and one of the many reasons NRCA strongly opposed PPACA before its enactment.

The opposite result

Beginning in 2014, the HIT will be levied on premiums paid to health insurance companies operating in the group and individual insurance markets based on the companies' market shares. But health insurance companies won't pay the tax; instead, the tax will be passed on to the customers of health insurance companies—small businesses and self-employed individuals who purchase fully insured health care plans. The tax will not affect large corporations that self-fund health care benefits for their employees because they don't purchase coverage in fully insured markets.