A major revenue source for the Patient Protection and Affordable Care Act may be about to go bye-bye.
Bipartisan legislation to repeal the law's health insurance tax hit a tipping point in the U.S. House of Representatives when supporters of the repeal said they had reached a majority with 218 backers.
HIT has not been a hit even among the PPACA's champions. While the repeal effort was launched by Republicans, the HIT repeal House legislation was introduced by the bipartisan team of U.S. Rep. Charles Boustany (R-La.) and U.S. Rep. Kyrsten Sinema (D-Ariz.).
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America's Health Insurance Plans, a major industry lobbying group, has been a strong backer of the repeal effort. The organization has said that the revenue generated by HIT is more than offset in the collateral financial damage it inflicts on small businesses, consumers, seniors and others, mostly in the form of higher premiums.
Former AHIP President and CEO Karen Ignagni said the repeal effort "is a practical solution that would benefit millions of families and small business owners. The health insurance tax makes coverage more expensive, and it should be repealed."
Opponents of HIT have said it represents a $145 billion surcharge on insurance, one that will continue to escalate over time. An analysis by Oliver Wyman, an insurance consulting firm, estimated that repeal of the health insurance tax will save individual policyholders on average $514, with small group savings of $688 per year for family coverage and $719 a year for large group family insurance. It also adds $360 per year for each senior with Medicare Advantage and $152 per year for each Medicaid enrollee, Oliver Wyman said.
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Dan Cook
Dan Cook is a journalist and communications consultant based in Portland, OR. During his journalism career he has been a reporter and editor for a variety of media companies, including American Lawyer Media, BusinessWeek, Newhouse Newspapers, Knight-Ridder, Time Inc., and Reuters. He specializes in health care and insurance related coverage for BenefitsPRO.
