DES MOINES (WHO) — Small businesses in Iowa are concerned about a pending tax hike on health insurance coming in 2020. A meeting was held on Thursday, February 21, for those who have concerns.
As a part of the Affordable Care Act, a tax was levied on insurance companies, which was passed on to consumers. The tax was delayed, but is scheduled to be revived in 2020.
Iowa Senator Charles Grassley’s State Director Carol Olson spoke to a coalition of business leaders in Urbandale, Iowa, on what they call Stop the Hit or Health Insurance Tax. The tax is expected to hit large employers with a $429 per family increase and small employers with a $412 per family increase. Seniors and the disabled will see an increase of $470 per couple.
The group heard from a variety of small business leaders on the tax impact.
“This past year, when we started 2019, we were taking another big hit on our insurance, and I had to look for other opportunities to reduce those expenses, while trying to maintain close to the same level of benefits,” said one business owner.
“Crunching these numbers looking at it, and reviewing what the HIT could do, in terms of my hiring, is a real concern. It means I can`t offer as competitive of salary perhaps,” said another business owner.
Business leaders are trying to raise awareness the tax is returning in 2020. They hope people can write letters and lobby Congress for another.