Missouri Chamber urges repeal or delay of the Health Insurance Tax
The Missouri Chamber of Commerce and Industry has sent a letter to U.S. Sen. Roy Blunt urging repeal or delay of the Health Insurance Tax (HIT) provision in the Affordable Care Act. The HIT is levied on participants in the fully-insured market, where 87 percent of small businesses purchase their health insurance. The HIT will result in significant health insurance costs disproportionately shouldered by small businesses and middle income Americans.
Congress delayed implementation of the HIT for 2017, but this tax is set to return on January 1, 2018, unless Congress acts.
In the letter, Missouri Chamber President and CEO Dan Mehan cited data from actuarial consulting firm Oliver Wyman that estimates the HIT will cause a $22 billion spike in health insurance premiums for more than 100 million Americans in 2018. In Missouri, the HIT will raise premiums for family coverage by $460 for small businesses and $498 for large employers.