AAIA supports bill to repeal health insurance tax

Tax on insurance providers begins in 2014, expected to cost $8 billion in first year alone.

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.

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