When Obamacare became law in 2010, many of the unpopular provisions of the legislation were delayed one is about to hit your wallet.
Despite Congress failing to repeal and replace Obamacare, conservatives led by Senator Ted Cruz and taxpayer advocates aren’t giving up. Their goal? Stop the Obamacare Health insurance Tax.
When Obamacare became law in 2010, many of the unpopular provisions of the legislation were delayed to avoid political fallout for Democrats in the following elections. By 2017, most of the law’s key provisions and regulations have taken effect, but one major tax hike is scheduled to be implemented next year.
The Obamacare Health Insurance Tax (HIT) is set to go into effect on January 1, 2018. The HIT is a tax on health insurance premiums, levied on health insurers providing coverage to small businesses and taxpayers.
Carrying this fight to stop the HIT is Senator Ted Cruz, who urged his colleagues on Twitter: “GOP can’t give up on [their] promise to #RepealandReplace, including #Obamacare’s taxes increasing premiums and killing jobs.”
— Senator Ted Cruz (@SenTedCruz) August 8, 2017
According to a new Oliver Wyman study out this month, the tax is estimated to cost American taxpayers $14.3 billion, with seniors, small businesses and their workers taking the brunt of the cost. Hardest hit will be families buying on the small group marketplace, costing them an additional $500 annually. No group is spared from the new tax, as the study found Medicaid enrollees and Medicare Advantage members will also be paying hundreds more once this tax goes into effect. The
American Action Forum is noted for years that the hardest hit by the tax will be Americans making less than $50,000 per year.
The Kaiser Family Foundation, Americans for Tax Reform, and American Action Forum have been ringing the alarm about the Health Insurance Tax, noting how the tax is a driving factor behind health insurance cost increases and premium hikes in 2018. In a report issued this month, the Kaiser Family Foundation explained that “ACA’s health insurance tax, which adds an estimated 2 to 3 percentage points to premiums” are a factor in insurance companies raising premiums in 2018.
Congress delayed the Health Insurance Tax in 2015 as part of a larger bipartisan spending and tax package, but the delay was only temporary. The 2015 vote brought more than 100 congressional Democrats and 250 Republicans together to delay the Obamacare Health Insurance Tax.
Conservative and small business groups remain optimistic that the tax will be delayed again or repealed once and for all, but are demanding swift action from leaders in Congress. There is still time for Congress to act, but they must do so quickly as health insurers are setting rates and families are balancing their budgets heading into 2018.
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