Fact Sheet
October 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.

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.
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