Washington, D.C. – America’s Health Insurance Plans’ (AHIP) President and CEO Karen Ignagni released the following statement in support of bipartisan legislation co-sponsored by Representatives Charles Boustany (R-LA) and Jim Matheson (D-UT) to repeal the Affordable Care Act’s (ACA) health insurance tax:
“The health care reform law includes a new $100 billion sales tax on health insurance that will drive up costs for consumers and employers. Unless this tax is repealed, next year an average family will pay over $300 in higher premiums, seniors enrolled in Medicare Advantage will face $220 in reduced benefits and higher out-of-pocket costs, and state Medicaid managed care plans will incur an additional $80 in costs for each person covered. At a time when many families are struggling due to the weak economy, this tax will mean less money to pay the bills or save for retirement or a child’s education.
“The health insurance tax will add a financial burden on families and small businesses at a time when they can least afford it, and it should be repealed.”
Facts about the Health Insurance Tax:
- Starting next year the ACA imposes a new $100 billion tax on health insurance. The tax will start at $8 billion in 2014, increasing to $14.3 billion in 2018, and will continue to increase each year.
- The health insurance tax is larger than the device tax and the prescription drug tax combined.
- The health insurance tax will increase costs for individuals and families purchasing coverage on their own, small businesses, seniors and people with disabilities enrolled in a Medicare Advantage plan, and state Medicaid managed care plans.
- The health insurance tax is far greater than the minimum penalty for those who choose not to buy health insurance – further incentivizing young, healthy people to forgo purchasing insurance until they need medical care.