The fate of Obamacare’s health insurance tax (HIT) is currently being decided in negotiations over a year-end bill. Also in the mix is a two-year delay of Obamacare’s medical device tax, loosening the restrictions on health savings accounts and delay of the Cadillac tax – all Indiana Chamber-supported efforts.
HIT implementation has consistently been delayed. But Congress is cutting things a bit close this time, with that tax slated to take effect Jan. 1 unless there is action to prevent it.
The concern it that HIT will trigger a tax increase to Hoosier small businesses and individuals. That’s because HIT rests entirely on the insured marketplace, which means businesses and their workers will feel the brunt in the form of higher premiums for consumers, including small and family-owned businesses.
Negotiations are still in early stages, but show some promise.
“Members are working to deliver as much relief as possible from the health insurance tax – as soon as possible,” a Ways and Means Committee spokesperson said.
On the Senate side, the tax bill has pushed the Obamacare tax delays to the back burner. Senate Finance Chairman Orrin Hatch of Utah said the panel hasn’t considered delay legislation yet.
“But we’ll have to get into it, there’s no question,” he said.
We thank Sen. Joe Donnelly for drafting language in October to stop the HIT via S. 1987; we’re urging him, Sen. Todd Young and our entire delegation to continue their support.
Resource: Caryl Auslander at (317) 264-6880 or email: [email protected]