March 21, 2013

Senator Co-Sponsors Legislation To Repeal Health Insurance Tax

Would lessen the tax burden placed on Idaho businesses and families

Washington, D.C. - Idaho Senator Mike Crapo, a supporter of repealing Obamacare (the Patient Protection and Affordable Care Act), joined several colleagues as an original co-sponsor of the Jobs and Premium Protection Act.  This bill would eliminate the health insurance tax (HIT) included in the President's law that is causing insurance premiums to rise, proving costly to businesses and families.

"When this law was passed, many in Congress and the Administration said it would lower costs and if an individual liked the coverage he or she had, that person would be able to keep it," Crapo said.  "These assurances have proven false with this law leading to higher premiums, drops in coverage and skyrocketing costs.  This Saturday, March 23, marks the third anniversary of the signing of the health care law.   Many items, like the HIT, have not even taken effect yet.  Ultimately, when this tax begins in 2014, the price is going to be passed along to consumers.  This tax will continue to impose higher costs, hinder job growth and lessen the amount workers see in their take-home pay.  The Jobs and Premium Protection Act will repeal the HIT in order to lessen the many burdens this law places on Idaho's families and small businesses.

"When the health care bill was being forced through Congress, the President made a firm pledge that taxes would not go up.  I have twice offered an amendment to strip the bill of any provision that would violate that pledge.  Although this amendment was defeated both times, it should not deter Congress from finding solutions to protect middle class families from tax increases."  

The Jobs and Premium Protection Act, originally introduced by Senators John Barrasso (R-WY) and Orrin Hatch (R-UT), repeals Section 9010 of the Patient Protection and Affordable Care Act, or the HIT.  If the HIT is allowed to take effect, starting in 2014, health insurance companies will be taxed based on premiums written in the market where 87% of small businesses purchase their coverage. 

Crapo is joined as an original co-sponsor of the bill by Senators Richard Burr (R-North Carolina), Dan Coats (R-Indiana), Jim Inhofe (R-Oklahoma), Johnny Isakson (R-Georgia) and Mike Johanns (R-Nebraska).