BETTER MEDICARE ALLIANCE STATEMENT ON HEALTH INSURANCE TAX RELIEF ACT
“At a time when many Americans are deeply concerned about rising health care costs, millions of American seniors and individuals with disabilities are facing an eminent premium increase due to the impending Health Insurance Tax.
“The Health Insurance Tax (HIT) is scheduled to go into effect next year unless delayed by Congress. Over 20 percent of the $20 billion tax is expected to be absorbed by nearly 22 million seniors and individuals with disabilities on Medicare Advantage.
“Better Medicare Alliance applauds action taken by Representatives Ami Bera (D-CA), Josh Gottheimer (D-NJ), Kenny Marchant (R-TX) and Jackie Walorski (R-IN) to work in a bipartisan manner to stop the burden of the tax. Republicans and Democrats agree that this tax is harmful to seniors and have voted to delay the tax in the past. Our coalition calls on Congress to act quickly to protect Medicare beneficiaries from higher premiums, reduced benefits, and higher out-of-pocket costs.
“If Congress fails to act, premiums could increase by more than $500 in additional annual premiums for the typical Medicare Advantage couple. With over half living on less than $30,000 annually, this HIT would be too much for most people enrolled in Medicare Advantage to absorb. According to an analysis by Morning Consult, 85 percent of Medicare Advantage enrollees are unaware of this pending hit to their wallets and 83 percent of seniors said a premium increase of $245 or more would have a negative impact on their ability to afford health care and other necessary expenses.
“Congress must step in to provide financial relief for one of our most vulnerable populations and protect the affordability of Medicare Advantage highly valued by a growing number of Americans.”
Better Medicare Alliance sent a letter signed by 42 organizations to Congress supporting delay of the Health Insurance Tax on February 28, 2019.