Today marks the six-month countdown to derail the health insurance tax (HIT) that was included in the Affordable Care Act (ACA). Unless Congress acts, beginning in 2014, the HIT tax will significantly drive up the costs for small and medium-size manufacturers that buy health insurance in the fully insured market. While this tax will fall directly on health insurance companies, CBO has stated the majority of these costs will be experienced by small businesses and their employees.
A bipartisan group of members of Congress including Senators Orin Hatch (R-UT) and John Barrasso (R-WY) and Representatives Charles Boustany (R-LA) and Jim Matheson (D-UT), have introduced legislation to repeal this tax on manufacturers which will have the effect of impeding job creation in an ever challenging economic environment. The NAM supports these efforts and hopes that Congress will find a solution to make health care coverage more affordable before the 2014 deadline goes into effect.