Permanent Repeal of HIT (Health Insurance Tax)
Health Insurance Carriers Will See Tax Relief in 2021 = Lower Premiums and Additional Coverage For Medicare Advantage Plans.
One of the drivers of a competitive market in Medicare Advantage and other health plans is the permanent repeal of HIT (Health Insurance Tax) effective January 1, 2021. The Affordable Care Act initially mandated HIT, and in 2020 the fee is estimated to cost carriers over 15 billion dollars. This tax was generally passed on to consumers through increased premium or decreased benefits that might have otherwise been offered. If you would like to find out more about the HIT tax and its repeal this link will be helpful: https://www.law.cornell.edu/cfr/text/26/57.1
Note: “Section 9010 of the Patient Protection and Affordable Care Act (ACA) imposes a fee on each covered entity engaged in the business of providing health insurance for United States health risks. The first filings were due from covered entities by April 15, 2014 and the first fees were due September 30, 2014. There was a moratorium on the fee for 2017 and there was a suspension on the fee for 2019. The fee was repealed for calendar years beginning after December 31, 2020.” https://www.irs.gov/businesses/corporations/affordable-care-act-provision-9010