Health Tax Could Have Devastating Impact

October 21, 2019

How can Congress contain health insurance costs? They can (and must!) start by voting yet this year to delay or repeal the federal Health Insurance Tax (HIT Tax).

The Michigan Chamber is advocating for Congress to act before the end of 2019 on bipartisan legislation to delay this sales tax on health insurance coverage. The HIT disproportionately affects small-business owners, including the self-employed. Although it is levied on insurers, the tax is passed on to businesses who purchase health care. This translates into 23 million Americans counting on their employer-provided health care coverage who will be affected by higher premiums, lost coverage, or worse. It is estimated by economists that the HIT will cost the average American family up to $5,000 over the next decade. It is effectively a tax on the middle and working classes as well as the businesses who employ them.

Without repeal or delay, the HIT Tax will increase the cost of health insurance, putting it out of reach for more businesses and individuals, so It is important that S. 172 and H.R. 1398 pass this year. Please contact Wendy Block at 517.371.2100 or wblock@michamber.com with any questions.