[Congressional Record Volume 163, Number 172 (Wednesday, October 25, 2017)]
[Senate]
[Pages S6802-S6803]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



                               Healthcare

  Mr. GARDNER. Mr. President, I come to the floor this afternoon to 
talk about the Healthcare Tax Relief Act, legislation I introduced to 
delay the health insurance tax that was created by the Affordable Care 
Act.
  This tax is often referred to as the HIT tax. The HIT tax imposes 
fees on health insurance coverage to consumers. It is a pretty simple 
business concept that this HIT tax results in. If a fee increases on an 
insurance policy and the fee goes up--there is a fee charged to the 
company that issues this insurance policy--then that fee gets passed on 
to the consumer. It is the consumer, then, who pays the fee in the form 
of higher health insurance costs.
  As is the case with most excise taxes, whether it is an excise tax on 
food or beverage or any other item of personal good, if this health 
insurance tax takes effect, costs will be passed on to consumers 
directly in the form of higher premiums. That is confirmed by the 
Congressional Budget Office.
  This is one of the cost drivers that was built into the Affordable 
Care Act. This health insurance tax would directly increase the 
premiums of the consumer's insurance product. This tax was supposed to 
begin a few years back in 2014. It was going to start at $8 billion, 
and by 2018 the tax would reach $14.3 billion. However, Congress 
recognized that this tax was going to have a significant impact on the 
price of coverage and, as a result, suspended the tax from taking 
effect in 2017. Without congressional action to delay or stop or 
prevent this ObamaCare tax from taking place again, this tax will take 
effect in 2018.
  According to nonpartisan actuarial analysis conducted by Oliver 
Wyman,

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an estimated 157 million Americans will be affected by this massive 
tax. Even more middle-income earners across this country, 157 million 
Americans and working Americans, are expected to shoulder the weight of 
this tax.
  Oliver Wyman estimated that premiums will rise by 3 percent in each 
year; 2018, 2019, and 2020. That is 3 percent each year. That is 9 
percent over 3 years.
  To put this in simple perspective, in Colorado alone, premiums in the 
individual market rose by 34 percent from plan year 2017 to plan year 
2018. Adding an additional 3 percent every year for those 3 years would 
leave those on the individual market paying nearly 43.3 percent, on 
average, more year to year if combined with the 2018 increases at the 
end of that 3-year, 9-percent increase run.
  What is more, according to the Department of Health and Human 
Services, the average individual market premiums have increased by 105 
percent from 2013 to 2017. Think about that. When the Affordable Care 
Act passed, when ObamaCare was passed, a promise was made that the 
average family would see a decrease in their healthcare costs of $2,500 
per family, but, instead, from 2013 to 2017, they saw a 105-percent 
increase in costs. If the health insurance tax takes effect, as planned 
by ObamaCare, then we would see another 9-percent increase over the 
next several years on top of that.
  Without congressional action to delay this tax, estimates show that 
costs will rise between $200 and $300 annually for individuals and $500 
annually for families. That is a $200 to $300 increase for individuals 
and a $500 increase annually for families.
  To put that into some perspective, 25 percent of Americans don't have 
access--emergency access--to $100. In an emergency, 25 percent of 
Americans don't have immediate access to $100. Yet here we are talking 
about a mandated law--you have to have insurance coverage under the 
Affordable Care Act--but this law would then increase costs $200 to 
$300 on an individual and $500 annually for families.
  Statistics from the Federal Reserve show how much of a hardship this 
would create. The Federal Reserve found that 46 percent of Americans 
did not have enough money to cover a $400 emergency expense. Yet the 
ObamaCare HIT tax would increase family insurance costs by $500. Forty-
six percent of Americans don't have access to $400 in an emergency. Yet 
the ObamaCare HIT tax would increase it by $500.
  This tax has the potential to push over half of Americans into 
financial ruin, and it would be negligent for Congress to allow this 
tax to take effect. The financial threat this tax imposes on hard-
working families is a far cry from that bold promise that was made to 
reduce costs by $2,500 per family--one of the biggest Pinocchios, so to 
speak, of the Affordable Care Act. At a time when we know that almost 
half of Americans could not shoulder a $400 emergency expense, it would 
simply be irresponsible to allow this ObamaCare HIT tax to take effect.
  Furthermore, the impacts of this tax touch our seniors who have 
earned their benefits as well. For seniors enrolled in Medicare 
Advantage plans--and Medicare Advantage is one of the most popular 
aspects of Medicare--premiums are expected to rise by roughly $370 a 
year per enrollee if Congress doesn't find a resolution. In many cases, 
these are fixed-income individuals who would see their premiums 
increase $370 a year because of the ObamaCare HIT tax.
  In addition, seniors enrolled in Medicare Part D prescription drug 
plans can expect their premiums to increase as well. Hit them on their 
Medicare plans and hit them on the prescription drug plans--higher 
costs due to this ObamaCare HIT tax.
  Even more, the impacts of the health insurance tax have large-scale 
consequences in the workplace as well. A study by the National 
Federation of Independent Business found that allowing the HIT tax to 
take effect could result in job losses for as many as 283,000 people by 
2023. This tax could have the impact of costing 286,000 jobs by 2023. 
Research and analysis from our most respected actuaries continue to 
validate the negative consequences of the health insurance tax.
  On behalf of all hard-working Americans, I call upon my colleagues in 
the Senate to join me in cosponsoring this commonsense piece of 
legislation, the Healthcare Tax Relief Act. Healthcare plans are being 
finalized right now for the 2018 rate year, and it is urgent for 
Congress to take action so that consumers are not saddled with yet one 
more cost that they can't afford.
  Mr. President, I yield the floor.
  The PRESIDING OFFICER. The Senator from Michigan.