Barrasso, Hatch reintroduce Jobs and Premium Protection Act
Bill will eliminate Obamacare health insurance tax, save jobs & block rising health premiums.
by Senator Barrasso media release
January 17, 2015
WASHINGTON, D.C. Ė On Friday, Jan. 16, 2015, U.S. Senators John Barrasso (R-WY) and Orrin Hatch (R-UT) reintroduced the Jobs and Premium Protection Act. The legislation will save jobs and help American families by eliminating the costly, unfair and job-crushing health insurance tax (HIT) included in the Presidentís health care law.
"This massive health insurance tax is another example of how the Presidentís health care law was designed so the most painful parts of the law kick in years later," said Sen. Barrasso. "Our small businesses, their employees and self-employed Americans are being hit the hardest by this unfair tax. Washington should be focused on helping small businesses grow, not burdening them with more taxes. Senator Hatch and I will continue the fight to eliminate this job-crushing policy that has only made it harder for Americans to afford their health care."
"This tax is yet another hidden healthcare tax arbitrarily created to pay for Obamacare," Sen. Hatch said. "Raising taxes on health insurance means higher healthcare costs for patients. Even worse, this tax also negatively impacts the ability for small businesses to hire and grow. If the President were truly concerned about hardworking families struggling to succeed and growing the economy, he would work with Congress to repeal this misguided tax."
Senators Lamar Alexander (R-TN), Kelly Ayotte (R-NH), Roy Blunt (R-MO), Richard Burr (R-NC), Dan Coats (R-IN), Mike Crapo (R-ID), Deb Fischer (R-NE), Jeff Flake (R-AZ), Cory Gardner (R-CO), James Inhofe (R-OK), Johnny Isakson (R-GA), Mark Kirk (R-IL), Jerry Moran (R-KS), Pat Roberts (R-KS), Marco Rubio (R-FL) Tim Scott (R-SC), Pat Toomey (R-PA), David Vitter (R-LA), and Roger Wicker (R-MS), are original cosponsors of the Jobs and Premium Protection Act.
The Jobs and Premium Protection Act repeals Section 9010 of the Presidentís health care law, known as the health insurance tax (HIT).
The taxís price tag in 2015 is $11.3 billion. It escalates to $14.3 billion by 2018. The non-partisan Joint Committee on Taxation estimates that between 2013-2022 the tax will total over $100 billion.
Small businesses are the backbone of the American economy, but this tax will directly impact their ability to create the jobs this economy desperately needs. This tax falls directly on the fully insured insurance market, where 87% of small businesses with fewer than 100 employees purchase their coverage.
The National Federation of Independent Business found that this tax will force the private sector to eliminate between 152,000 to 286,000 private sector jobs between now and 2023.
Families will also experience higher premiums because of this tax. A study by former CBO Director Douglas Holtz-Eakin shows the average employee with a family plan will see their take-home pay reduced by $5,000 over the next 10 years due to this tax. The Joint Committee on Taxation expects that eliminating this tax would save an average family $350-$400 in 2016.
Seniors will also see their health premiums impacted by this tax. An individual receiving their coverage through Medicare Advantage could cost beneficiaries over $3,500 per year in higher premiums and reduced benefits.
Even Medicaid plans will see their cost increase because of this tax. Estimates indicate that these plans will see an increase of over $1,500 over ten years.