Fact Sheet

The Impact of the Health Insurance Tax on Medicare Advantage

The Patient Protection and Affordable Care Act imposed an annual tax on health insurance premiums.

Key Facts

  • The Health Insurance Tax (HIT) is a multi-billion-dollar annual tax on all health insurance coverage.
  • Over 25% 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.
  • Two pieces of legislation have been introduced to delay this tax H.R. 1398 and S. 172, the Health Insurance Tax Relief Act.
  • Better Medicare Alliance urges Congress to suspend the tax to protect Medicare Advantage beneficiaries.