Washington, DC – At the start of the new year, Texas families were “hit” with a significant tax increase on their health insurance, driving up the cost of their premiums by $513 on average in 2018 alone. Stop The HIT, which represents the nation’s small business owners, their employees and the self-employed, has called on members of Congress to suspend the health insurance tax (HIT) for 2018 – 2019, providing middle-class families with the cost-savings they deserve.
The HIT is a multi-billion-dollar tax imposed on the health insurance premiums of middle class workers, seniors, small businesses, and Medicare and Medicaid beneficiaries.
In Texas, the HIT impacts more than 2.4 million small businesses, which employ more than 4.4 million private sector workers. According to research by the National Federation of Independent Business Research Foundation, the HIT will jeopardize between 152,000 to 286,000 private-sector jobs across the U.S. by 2023, and reduce real GDP by as much as $20 billion to $33 billion over the same period.
Absent immediate Congressional action to repeal or delay the HIT, Texas’ small businesses and their employees will suffer under the weight of rising premiums, diminishing their ability to grow, plan for the future and offer important employee benefits.
By providing relief from the HIT, Texas’ small business employees and their families could see cost savings of $6,347 on average over the next ten years, according to a study by Oliver Wyman. Millions of hard-working Americans who need relief from exorbitant health care costs are urging Congress to take immediate action.
In 2015, nearly 400 Republicans and Democrats passed bipartisan legislation to suspend the HIT for one year, providing cost-savings and relief to consumers and small business employees across the country. The Stop The HIT Coalition urges Congressional members to once again prioritize HIT relief by delaying the impact of this burdensome tax for 2018 and 2019.
For more information on the impact of the health insurance tax, click here.
