AHIP and NFIB Partner on Premium Tax
The new health insurance tax that starts in 2014 will raise the cost of coverage for small employers, individual market customers and beneficiaries in public programs. Taxing health insurance contradicts the goal of health care reform – making coverage more affordable.
The head of the Congressional Budget Office (CBO) stated in testimony to the Senate Finance Committee in September 2009 that the health insurance premium tax along with other taxes on medical devices and pharmaceuticals “…would raise insurance premiums by roughly the amount of the revenue collected.”
A recent analysis of the premium tax by former CBO director Douglas Holtz-Eakin concludes that “The anticipated impact is as much as 3 percent or nearly $5,000 per family over a decade.”
AHIP and NFIB are partnering to get out the facts about the impact the premium tax will have on the cost of coverage and to build bipartisan support to prevent it from going into effect in 2014. The two organizations will commission research, educate policymakers, and raise awareness through new media.
NFIB also recently announced a new coalition made up of employer associations that are concerned about the premium tax. The coalition brings together employer leaders from across the economy who understand the impact taxing health insurance will have on small businesses that struggle every day to provide quality, affordable coverage to their employees.
In addition to joining NFIB in raising concerns about the impact the tax will have on small employers, AHIP is also focusing on the impact on the millions of Americans who purchase coverage in the individual market and beneficiaries who have private health plan coverage through public programs. Click here to learn more: www.ahipcoverage.com/premiumtax.
“We are going to do everything we can to make sure Congress stops this misguided tax that will make it even harder for job creators to offer health insurance to their employees,” said NFIB’s Amanda Austin. “By working collaboratively with AHIP we can build more awareness of the impact of this tax.”
“This tax will increase costs for small employers and also for individual market customers and public program beneficiaries. We appreciate NFIB’s leadership on this critically important issue, and look forward to working with them to shine the spotlight on how the new premium tax will drive up the cost of coverage,” added AHIP’s Robert Zirkelbach.