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OSCPA advocates ACA tax repeal

Written on Jul 31, 2020

A tax in the Affordable Care Act should be repealed because it will harm Ohio small businesses and the state’s poorest citizens.

That was the message in a letter OSCPA sent recently to Senator Rob Portman, R-Cincinnati, and Rep. Pat Tiberi, R-Galena.

The Health Insurance Tax (HIT) was created within the Affordable Care Act as an annual fee. “It ultimately amounts to what will be a new tax on many Ohioans,” OSCPA wrote.

While the fee is technically imposed on insurers, the Congressional Budget Office has confirmed that the tax "would be largely passed through to consumers [small business owners and their employees] in the form of higher premiums for private coverage."

“Simply put, implementing a regressive and harmful tax policy like the HIT is a very bad idea,” OSCPA wrote. “The HIT is expected to increase healthcare costs for small businesses up to $500 per employee, per year. The OSCPA cannot sit idly by as the HIT comes back into effect at the end of next year.”

Though lawmakers have temporarily stopped the HIT, the Society said a full repeal is needed, preferably in Congress’ upcoming lame duck session. Senator Portman and Congressman Tiberi already have supported a one-year delay of implementation and are looking at a permanent solution to the HIT.

Read the letter in its entirety.