While attention has been focused on the Tax Cuts and Jobs Act, other tax issues need Congress’ attention as well, including the Health Insurance Tax (HIT) and medical device tax, both of which are scheduled to take effect in 2018.
Catie Kawchak of the National Association of Manufacturers writes that HIT could raise premiums by more than $500 per family. In New Jersey, it would be more. According to a UnitedHealth Group report in October, the increase would be $642 for family coverage policies in New Jersey.
Kawchak says the House Ways and Means Committee is expected to take up legislation to halt HIT and the 2.3 percent excise tax on medical devices now that the committee has sent its tax reform bill to the full House.
“Manufacturers are committed to providing quality health insurance options for their employees. This is a vital tool for attracting and maintaining a skilled workforce,” Kawchak writes in the Shopfloor blog. “The federal government should be encouraging not discouraging employers from providing quality health benefits to American workers.”