House Ways and Means Subcommittee on Select Revenue Chairman Rep. Pat Tiberi (R-Ohio) said on Wednesday that a proposed rule to exempt some self-insured, self-administered health plan holders from the Affordable Care Act’s belly button tax provision “misses the mark.”
The Obama Administration proposed a rule in the Federal Register on Monday that would provide exemptions from the belly button tax for particular health plan holders. The tax is designed to fund ACA’s reinsurance program, which helps absorb the cost of insurance companies providing health coverage to high-cost enrollees.
“The Obama Administration’s proposed rule misses the mark in carving out only a small portion of those affected by the belly button tax,” Tiberi said. “…The tax is far-reaching, affecting small businesses, large employers and unions alike. The president shouldn’t be picking winners and losers. Reports indicate that the tax will be harmful to business, a disincentive for employers to provide healthcare coverage and a contributor to rising healthcare costs, and this is why the tax should be repealed for everyone.”
Tiberi and Rep. Daniel Lipinski (D-Ill.) introduced legislation in November that would completely eliminate the belly button tax. The bill, which has drawn 16 sponsors, has been referred to the House Energy and Commerce Committee for consideration.
Tiberi called the tax “punitive” and said everyone should be exempt.