Stop the Health Insurance Tax Coalition
The Stop the Health Insurance Tax Coalition ("Stop the HIT") is a coalition of trade associations and organizations that seeks to repeal Section 9010 of the Patient Protection and Affordable Care Act ("ACA"), which it calls the Health Insurance Tax ("HIT") provision.
This health insurance fee, referred to by Stop the HIT as a tax, applies to health insurance companies and is "roughly equal to the percent of the market subject to the tax that the insurance company covers" when applied to a total fixed fee set forth in the ACA. Despite this fee applying to large health insurance companies, Stop the HIT claims that this "costly, unfair and hidden tax increases the cost of health insurance in the small business market and needlessly stifles economic growth."
What "Stop the HIT" calls "the HIT" is a fee that applies to any health insurance issuer, health maintenance organization, or insurance company and is commensurate with the market share of that particular entity, as imposed by provision 9010 of the ACA. This fee is calculated based on a ratio of the net premiums an entity takes in annually to the aggregate net premiums taken in by all entities during that year, which is then applied to a fixed total fee amount to figure out what portion of the fixed fee amount each entity must pay, according to the Internal Revenue Service.
Net premiums collected by these health insurance entities are only taken into account if they amount to more than $25 million annually, and are only fully taken into account if the net premiums amount to more than $50 million annually.
This health insurance fee generally does not apply to self-insured employers, governmental entities, nonprofit corporations, and voluntary employees' beneficiary associations, due to specific exemptions in the law. While this health insurance fee only fully applies to health insurance entities with annual net premiums totaling over $50 million, Stop the HIT claims that it is a hidden tax on small businesses.
Stop the HIT refers to this health insurance fee as "increased costs for small businesses" that "translate[s] to restrictions on their ability to grow and create jobs." Stop the HIT describes its mission as "generat[ing] grassroots support for repeal by educating policymakers and activating small business owners, their employees and the self-employed who are directly impacted by the pending HIT."
Legislation Supported by the Coalition
Representative Charles Boustany of Louisiana and Representative Kyrsten Sinema of Arizona proposed "The Jobs and Premium Protection Act" (H.R. 928), which would also repeal this fee, on February 12, 2015.
Stop the HIT supports both of these proposed bills and has even written a letter of support to Reps. Boustany and Sinema.
The Stop the HIT Coalition has over 30 members, including:
- American Farm Bureau Federation
- American Hotel and Lodging Association
- Associated General Contractors
- International Franchise Association
- National Association of Convenience Stores
- National Association of Manufacturers
- National Association of Wholesaler-Distributors
- National Federation of Independent Business
- National Restaurant Association
- National Retail Federation
- Retail Industry Leaders Association
- U.S. Chamber of Commerce
Articles and Resources
- Stop the HIT, "About Us," organizational website, accessed March 11, 2015.
- IRS, "Affordable Care Act Provision 9010," governmental website, accessed March 13, 2015.
- Stop the HIT, "Where Does it Hit?," organizational website, accessed March 11, 2015.
- "Stopthehit.com Registry," WHOIS.com, accessed March 11, 2015.
- U.S. Library of Congress, "S.183 - Jobs and Premium Protection Act," governmental website, accessed March 11, 2015.
- U.S. Library of Congress, "H.R. 928," governmental website, accessed March 11, 2015.
- Stop the HIT, "Stop the HIT Letter," organizational document, February 13, 2015.
- Stop the HIT, "Coalition," organizational website, accessed March 11, 2015.