Legislation introduced in the U.S. Senate last week would extend the 2019 moratorium on the health insurance tax (HIT) for two additional years.
The HIT directly strikes the self-employed, small businesses and their employees. The bill (S.172) was introduced by Sen. Cory Gardner (R-CO), and co-sponsored by Sens. John Barrasso (R-WY), Doug Jones (D-GA), Tim Scott (R-SC), Jeanne Shaheen (D-NH) and Krysten Sinema (D-AZ).
Small Business & Entrepreneurship Council president & CEO Karen Kerrigan applauded the bill, saying it brings relief from the looming potential for increases in health coverage costs.
“Extending this relief through 2020 and 2021 means small businesses will be saved from big increases in the cost of coverage that will harm their competitiveness and ability to provide coverage for existing and new employees,” Kerrigan said. “In this tight labor market, providing this benefit is essential to recruiting and maintaining the workers small firms need to effectively operate and grow. S. 172 will reinforce small business efforts to compete for workers, and support the growth of the economy in general.”
He said the bill would also create some stability for small businesses.
“The cost relief will help small firms better compete, provide insurance to more employees, or even for the first time, which is an important benefit for attracting and retaining employees in this very tight labor market,” Kerrigan said.
The Small Business Roundtable found that health care ranks as the No. 1 concern of small business owners.
“The small business community is thankful that Senators Gardner, Barrasso, Jones, Scott, Shaheen and Sinema are listening to entrepreneurs and have quickly responded to their needs,” Kerrigan added. “Every Senator needs to sign onto this important bipartisan legislation, which is a common-sense strategy to relieve small businesses of pending price hikes on health coverage.”