Auto Care Association

AAIA supports bill to repeal health insurance tax

The Automotive Aftermarket Industry Association (AAIA) and 30 other association members of the Stop the HIT Coalition applauded senators for introducing a bill that would repeal the health insurance tax enacted as part of the Patient Protection and Affordable Care Act.

A letter from the coalition thanked Senators John Barrasso, R-Wyo., vice chairman, Senate Republican Conference, and Orrin Hatch, R-Utah, ranking member of the Senate Committee on Finance, for introducing Senate bill 603 on March 19.

The bill, which currently has 12 co-sponsors, applies solely to the fully-insured market – the small business community’s major source of health insurance. The tax on insurance providers is due to begin in 2014 with a figure of $8 billion, and grows to $14.3 billion in 2018. The Congressional Budget Office has acknowledged that the tax will largely be passed on to small business employees in the form of higher premiums.