Fact Sheet

The Impact of the Health Insurance Tax on Medicare Advantage

Key Facts

  • The ACA imposed a multi-billiondollar annual tax on health insurance that is likely to increase premiums or cost-sharing for Medicare Advantage beneficiaries.
  • Over 20% of the HIT falls on Medicare Advantage and Part D plans.
  • Congress suspended the tax for 2019. • The HIT is scheduled to be reinstated for 2020.
  • As a result, premiums could increase by more than $500 for the typical Medicare Advantage couple in 2020.
  • Better Medicare Alliance urges Congress to suspend the tax for 2020 and to repeal the HIT in future years to protect Medicare Advantage beneficiaries.