Suspending the Health Insurance Tax Would Save Seniors More than $240 in 2020
Washington, D.C. – More than 2 million seniors in the Coalition for Medicare Choices thanked Sens. John Barrasso (R-WY), Cory Gardner (R-CO), Doug Jones (D-AL), and Jeanne Shaheen (D-NH) for their leadership in calling for a suspension of the 2020 health insurance tax (HIT). The Coalition for Medicare Choices (CMC) is the largest national organization representing millions of seniors enrolled in Medicare Advantage.
The HIT is a sales tax on health insurance that increases the cost of coverage for seniors, small business owners, and employees as well as individuals purchasing coverage in the exchange market. Suspending the tax will save seniors more than $240 in 2020 alone, providing continued stability and affordability for the millions who depend on this vital safety net.
The bipartisan group of Senators called on their colleagues to, “ensure Congress provides further relief from the tax on health insurance premiums in the lame duck.” The call to action comes at a critical time for Medicare beneficiaries. While seniors benefited from affordable Medicare Advantage premiums for 2017 and 2019 as a result of HIT suspension, the return of the tax threatens to undermine their coverage and benefits. The HIT also threatens the Medicaid program, which would impact state budgets and seniors who are dually eligible for Medicare and Medicaid.
As the letter notes, the HIT poses a direct threat to, “millions of seniors and individuals with disabilities—many of whom are financially vulnerable and rely on fixed incomes with half relying on incomes below $26,200.” Suspending the tax immediately would ensure those vulnerable beneficiaries are protected moving forward.