The National Federation of Independent Business (NFIB) is raising the red flag on the Obamacare Health Insurance Tax (HIT) and it’s 2015 implementation:
Using independent cost estimates, the Research Foundation’s BSIM (Business Size Impact Module) predicts the rise in cost of employer-sponsored insurance stemming from the HIT will result in a reduction in private sector employment of 146,000 to 262,000 jobs by 2022, with 59 percent of the job losses coming from small businesses. This will amount to a reduction of U.S. real output (sales) by between $19 billion to $35 billion during the same time frame. A similar study released in 2011 predicted a loss of 125,000 to 249,000 jobs and $18 to $30 billion in sales by 2021.
What is the HIT? Effectively, a 41% increase on health insurance firms. From Blue Cross Blue Shield:
The health insurance tax will total over $100 billion by 2022. The Joint Committee on Taxation estimates this tax will add an additional $350 to $400 annually to family premiums in 2016 alone.
Legislation has been introduced to repeal this costly tax: H.R. 763 introduced by Rep. Charles Boustany (R-LA) and Rep. Jim Matheson (D-UT) and S. 603 introduced by Sen. John Barrasso (R-WY) and Sen. Orrin Hatch (R-UT). In addition, Rep. Boustany and Rep. Ami Bera (D-CA) have introduced H.R. 3367, The Small Business and Family Relief Act to delay the tax.
So the solution is in the hopper, and unfortunately Congress is being forced to resort to a rearguard action rather than outright repeal. That having been said, should this legislation not make its way out of Congress, the cost both to premium holders (i.e. working families) will result in higher premiums and massive job losses in the health care sector — increasing wait times and work loads on an already overburdened health care system.
Your infographic of the day. Keep an eye on this one folks… it bears watching.
