5 Key Facts about the 2018 Health Insurance Tax

By at 10 January, 2018, 9:11 pm

Crushing health coverage costs are a top issue for America’s small businesses and entrepreneurs.  While small business owners are very optimistic about the economy and their prospects for business growth in 2018, burdensome health coverage costs hurt their competitiveness and bottom-lines.  According to an early December 2017 CNBC/Survey Monkey small business poll, the cost of health coverage was cited as the number one or number two “most critical issue” faced by these small firms (depending upon the size of the small business.)

Congress can help small businesses and their employees by providing relief from burdensome health insurance costs. Obamacare’s Health Insurance Tax (HIT) is now a reality in 2018, but it’s not too late for Congress to take action and provide small businesses with the relief they need and deserve.

The Facts:

1.) The Health Insurance Tax (HIT) hurts small business.  The HIT is estimated to cost hundreds of thousands of jobs and increase health care costs by more than $5000 per family over a decade.

2.) The Health Insurance Tax unfairly targets small business.  Large companies that “self-insure” are exempt from the tax.  Small and mid-sized businesses shoulder the burden.

3.) The Health Insurance Tax falls disproportionately on the middle class.  Half of the tax is paid by those earning between $10,000 and $50,000 per year.

4.) A HIT Rebate for Small Business? The 2018 Health Insurance Tax has already been factored into premiums for 2018, but if Congress acts, consumers and small businesses can still get full relief – meaning a rebate or a full credit (for the tax) against future premiums.

5.) Relief from painful costs. Giving small businesses relief from rising health care costs is an area where there is bi-partisan agreement.  Providing immediate relief, by rolling back the 2018 Health Insurance Tax, would literally put thousands of dollars in the hands of individual small business owners.

Small business owners have been promised lower health care costs, more affordable health coverage choices and a fairer, more transparent health care system for a VERY long time. Why not start the ball rolling and provide small businesses with HIT tax relief in 2018?

Small businesses are struggling with the high cost of health insurance. Obamacare made health care even more expensive by taxing small business health insurance coverage. Now, Congress must take action to send that money back to small businesses and reduce health care costs in 2018. Congress – Act Now – Stop the 2018 Health Insurance Tax, and start the rebate checks flowing to millions of American small businesses!

Related content and resources:

Should Small Businesses Take the HIT?, Small Business Insider, December 2017, Karen Kerrigan.

Joint Coalition Letter to Senate Leaders on Repealing the HIT and Cadillac Taxes, September 2017.

Suffocating Health Insurance Costs Must be Fixed Now, Small Business Insider, Karen Kerrigan.

Small Business Advocacy Group Welcomes Proposed Rule on Association Health Plans, January 4, 2018.

News and Media Releases