The health insurance industry is pushing legislation that would repeal the new tax on health insurance plans — and it has some serious support.
The Jobs and Premium Protection Act (H.R. 763), bipartisan legislation to repeal the health insurance tax in President Obama’s health care law, now has 218 cosponsors in the House, America’s Health Insurance Plans reported this week.
For months, the carrier group has slammed the tax and thrown its support at the legislation to repeal it.
The House bill was introduced by Reps. Charles Boustany, R-La., and Jim Matheson, D-Utah.
Related story: Senate Dems vote to repeal part of PPACA
The Patient Protection and Affordable Care Act imposes a new sales tax on health insurance that starts at $8 billion in 2014, increases to $14.3 billion in 2018, and will increase based on premium trend thereafter. The Joint Committee on Taxation estimates that the health insurance tax will exceed $100 billion over the next decade.
Revenue from the tax will help pay for PPACA, which is expected to extend coverage of millions of uninsured Americans.
Opponents argue the fees would be largely passed through to consumers in the form of higher premiums on private coverage.
“Taxing health insurance makes it more expensive, and that is the opposite of what health care reform was supposed to accomplish,” AHIP President and CEO Karen Ignagni said.