Scott Measure to Increase Transparency of Obamacare Costs
Charleston, SC – Working to ensure families and small businesses have a clearer picture into the impact of Obamacare and its numerous new taxes, U.S. Senator Tim Scott (R-SC) today introduced the Obamacare Tax Transparency Act to increase transparency into one of the largest taxes under Obamacare, the Health Insurance Tax. At $159 billion, the Congressional Budget Office (CBO) projects that the Health Insurance Tax (HIT) will accrue $159 billion over 10 years through yearly, increasing fees on most health insurance providers. Modeled off his amendment that was included in the Senate’s Budget Resolution in March, it ensures disclosure of the impact of the tax on their premiums by insurers.
“Families and small businesses deserve to know how much Obamacare is impacting their premiums” said Senator Scott, a member of both the Finance and HELP Committees. “Rising healthcare costs and new taxes like the healthcare insurance tax have caused uncertainty for families and small businesses in South Carolina and across the country as they try to anticipate their future budgeting.By informing consumers about the portion of health insurance premiums attributable to the health insurance tax, I hope that it will helpfamilies and small business ownersas they make their future healthcare decisions. Until we are able to fully repeal Obamacare, I want to ensure that South Carolinians and American families know about Obamacare’s real cost to them and their daily finances.”
Obamacare required by statute the collection of $8 billion annually beginning in 2014. This number will continue to rise up to $14.3 billion by 2018. Every subsequent year, the amount to be collected will be indexed to the average growth in premiums. The non-partisan Congressional Budget Office (CBO) estimated that the revenues from the tax will continue to rise and it is expected to collect $159 billion from 2016 to 2025. CBO warned that this tax will be “largely passed through to consumers in the form of higher premiums.”