Noem Introduces Bill Aimed at Decreasing Health Insurance Costs
WASHINGTON, D.C. – Rep. Kristi Noem today introduced the Protecting Families and Small Businesses Act, which would delay Obamacare’s costly Health Insurance Tax (HIT) by two years. If enacted, the provision could save families as much as $400 per year in healthcare premium costs, according to the Joint Committee on Taxation.
“Many small businesses and families in South Dakota have faced a stunning reality since the passage of Obamacare: They can’t afford to pay for the expensive mandated insurance, but they also can’t afford the HIT if they don’t provide insurance. Essentially, they’re taxed if they do and taxed if they don’t,” said Noem. “As a result, many employers have been forced to either cut workers’ hours or limit the small business’ growth. The best way to lift this burden is to fully and permanently repeal Obamacare, but until that time, I will fight to reduce the financial strain on hardworking South Dakotans. This legislation does just that.”
The HIT is a direct tax on health insurance providers for the services they provide to individuals, families, and other beneficiaries. According to the nonpartisan Congressional Budget Office, this tax is passed on to consumers in the form of higher premiums and out-of-pocket costs. Additionally, the National Federation of Independent Business Research Foundation found the HIT will cost between 152,000 and 286,000 jobs by 2023, with 57 percent of those lost jobs represented in small businesses.