Fact SheetOctober 18, 2019
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.
- 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.