Noem, Sinema Introduce Bipartisan Health Insurance Tax Repeal
WASHINGTON, D.C. — U.S. Representatives Kristi Noem (R-SD) and Kyrsten Sinema (D-AZ) today introduced H.R.246, the Jobs and Premium Protection Act, a bipartisan bill that would repeal the Affordable Care Act’s costly Health Insurance Tax (HIT). If enacted, the provision could save families as much as $400 per year in healthcare premium costs, according to the Joint Committee on Taxation.
“Many small businesses in South Dakota have faced a stunning reality since the passage of Obamacare: They can’t really afford to pay for the expensive mandated insurance, but they also can’t afford the HIT if they don’t provide insurance. Essentially, they’re taxed if they do and taxed if they don’t,” said Noem. “As a result, many employers have been forced to either cut workers’ hours or limit the small business’s growth. The Jobs and Premium Protection Act would open new economic opportunities from South Dakota to Arizona while giving thousands of families the peace of mind that their financial independence won’t be jeopardized because of this regressive tax.”
“Arizonans continue to struggle with increasing health care costs,” said Sinema. “Eliminating the tax is a bipartisan, commonsense fix that lowers out of pocket costs for hardworking Arizonans. I’m committed to working with my colleagues on both sides of the aisle to provide relief for individuals, families, and employers and increase access to quality, affordable health care.”
The HIT is a direct tax on health insurance providers for the services they provide to individuals, families, and other beneficiaries. According to the nonpartisan Congressional Budget Office, this tax is passed on to consumers in the form of higher premiums and out-of-pocket costs. Additionally, the National Federation of Independent Business Research Foundation found the HIT will cost between 152,000 and 286,000 jobs by 2023, with 57 percent of those lost jobs represented in small businesses.