MOLINE, Ill.(October 31, 2013) - Congressman Charles Boustany (R-LA) and Congressman Ami Bera (D-CA) introduced legislation Oct. 30 that would provide relief across the country by delaying the health insurance tax (HIT) scheduled to begin Jan. 1, 2014. HIT is a tax on health insurance company premiums, but analysis by many government and private economists indicate that those who buy fully insured health care policies will pay the tax. The American Rental Association (ARA) has been working toward a repeal of the HIT through membership in the Stop the HIT Coalition and ARA members’ lobbying efforts at ARA’s National Legislative Caucus in Washington, D.C. “The equipment rental industry is comprised of mostly small businesses who buy fully insured policies from health insurance companies, and the HIT will simply add more costs to policies that may also face higher premium costs for other reasons,” says John McClelland, ARA vice president of government affairs. “While we continue to work for full repeal of the HIT, we applaud Congressman Boustany and Congressman Bera for their efforts to provide some interim relief to the thousands of ARA members that are already seeing the effects of the HIT on their 2014 premium renewals,” McClelland said. The HIT is an often-overlooked aspect of the Patient Protection and Affordable Care Act (PPACA). Upwards of 88 percent of small businesses and individuals buy fully insured health care policies. “Congressman Boustany has long recognized the negative implications the HIT will have on small businesses who buy these plans and he has worked against the odds to correct this ill-conceived policy,” McClelland said. ARA will continue efforts in Washington, D.C. to educate representatives and draw attention to this tax that could cost small businesses thousands of dollars each year.
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