The health reform law imposes a "health insurance fee" on health insurance companies. Also known as the health insurance tax, or the HIT, this fee on providers will unfortunately be a pass through fee onto consumers. This fee will be administered in the form of premiums, ultimately increasing the cost of health care for millions of Americans. This claim has also been confirmed by the non-partisan Congressional Budget Office (CBO).
The HIT starts at $8 billion in 2014, increases to $14.3 billion in 2018 and will continue to increase each year. The Joint Committee on Taxation estimates that the health insurance tax will exceed $100 billion over the next ten years.
An analysis by Oliver Wyman estimates that this tax “will increase premiums in the insured market on average by 1.9% to 2.3% in 2014,” and by 2023 “will increase premiums 2.8% to 3.7%.”
NAHU belongs to two coalitions that actively lobby against the HIT. In this capacity, NAHU and its coalition partners lobby in favor of legislation would fully repeal or delay the tax.