House Passes Noem Provision to Reduce Health Insurance Costs

House Passes Noem Provision to Reduce Health Insurance Costs

Washington, D.C. – Today, Rep. Kristi Noem led the U.S. House of Representatives in passing a provision to delay Obamacare’s costly Health Insurance Tax (HIT) an additional two years. If enacted, the legislation could save families and small businesses as much as $400 each year in healthcare premium costs.

“Families and small businesses in South Dakota can’t afford the expensive insurance fees passed down to them because of Obamacare’s Health Insurance Tax,” said Noem. “Delaying the HIT is a commonsense fix that offers people immediate cost savings.”

“As a small business owner in South Dakota, I am grateful that our Congresswoman Kristi Noem has sponsored legislation to delay the HIT tax,” said Jerad Higman, owner of Masaba Inc. in Vermillion. “The HIT tax has raised the cost of healthcare premiums for my employees, but a two year delay of this tax will mean lower health care premiums and money that I can reinvest back into my company.”

“Since the HIT tax was passed alongside Obamacare, it has driven up healthcare costs for seniors, small business owners and their families,” said Dr. Bill Cohen, head of the American Pain Relief Institute in Yankton. “I’m thankful for Congresswoman Noem and the work she is doing to lower my healthcare costs and the healthcare costs of thousands of South Dakotans.”

The HIT is a direct tax on health insurance providers that could significantly drive up health insurance costs for more than 80,000 small businesses in South Dakota. 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, researchers estimate that the HIT will cost between 152,000 and 286,000 jobs by 2023, with 57 percent of those lost jobs represented in small businesses. Noem successfully delayed the HIT in 2019 through legislative language she wrote and President Trump signed. She has also voted more than 50 times in support of repealing Obamacare, in part or in whole.

Noem’s HIT delay today passed as part of a larger House package to reduce healthcare costs and allow families to better save money for health-related expenses. More specifically, H.R. 6311 increases the amount that can be saved tax-free for health care and includes provisions allowing more choice for Health Savings Accounts. Earlier this week, the House also passed a bill, which Noem helped introduce, to repeal Obamacare’s 2.3 percent medical device tax.

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