Congressman Kenny Marchant (TX-24) and Congressman Anthony Brindisi (NY-22) today introduced bipartisan legislation to protect jobs and prevent an increase in insurance premiums for families and small businesses.
The Jobs and Premium Protection Actwould directly address these rising costs by repealing the Health Insurance Tax (HIT). This tax on health insurance premiums affects both families and businesses, resulting in hundreds of dollars of additional costs each year.
“The last thing my constituents need is a tax driving up their health care premiums and out-of-pocket costs,” said Rep. Kenny Marchant. “The Health Insurance Tax (HIT) continues to do just that, which is why I am proud to introduce this bipartisan bill alongside Rep. Brindisi to permanently repeal the tax and provide relief to American families.”
“Upstate New Yorkers are already worried about skyrocketing health care costs, and the Health Insurance Tax (HIT) will only make things worse,” said Brindisi. “We need to work together to lower the cost of care, not raise prices for families and business. It’s time to eliminate this tax once and for all.”
A 2018 analysis from Oliver Wyman found that the HIT increased premiums by an average of $196 per person on the individual market. This same analysis also estimated that the HIT led to an increase of over $240 in premiums for Medicare Advantage members, as well as an average increase of nearly $480 for families. With this tax increasing the healthcare costs of over 142 million Americans who hold plans affected by the HIT, these rising premiums are felt across every state and every district.
Congress has voted multiple times to delay collections of the HIT. Under current law, the HIT is scheduled to return in 2020 with an even higher annual rate than previously seen. Health insurance providers will take these additional costs into consideration, pricing their premiums in accordance to the uncertainty that Congress may or may not provide another moratorium on HIT collections. Eliminating the tax in its entirety will result in lower health care costs for Americans and provide stability to the health insurance markets.
This bill is companion legislation to the bipartisan Jobs and Premium Protection Act (S. 80) in the Senate, introduced by Sens. Barrasso, Gardner, and Sinema.