The Affordable Care Act’s (ACA) health insurance tax (HIT) on policy premiums would be delayed for one year under legislation recently introduced by U.S. Sen. Cory Gardner (R-CO).
The Healthcare Tax Relief Act would delay implementation of HIT, which is expected to result in higher health policy premiums for 11 million households covered under individual market insurance plans and 23 million households covered under employer-sponsored health plans, according to the American Action Forum.
Gardner introduced the bill on Sept. 26 with support from U.S. Sens. Dean Heller (R-NV), Rob Portman (R-OH) and Roy Blunt (R-MO).
“We need to look at every avenue we can to provide relief to the American people from the high costs created by the Affordable Care Act,” Gardner said. “My legislation delays a tax that once implemented would lead to even higher costs of care for Coloradans. President Obama promised that this law would drive down costs, and this tax is just another example of how that’s not even close to being reality.”
Heller noted that Nevadans are already expecting an average premium increase of 38 percent in 2018 and the HIT going into effect would exacerbate this problem.
“Obamacare’s health insurance tax shifts costs to consumers and could lead to additional premium increases that could spike to as much as $500 for Nevada families,” Heller said. “As someone who has consistently fought to repeal burdensome ACA taxes, the HIT is yet another example of an ill-conceived Obamacare provision that will simply result in Nevadans paying even more for their health care.”
If Congress does not act to delay the tax from being implemented, it could cost Nevada’s Medicaid program more than $40 million, Heller added.