Friends of Manufacturing

Prevent Costly Health Care Tax from Weighing Down Manufacturers


Manufacturers want to maintain a healthy and happy workforce, and are committed to providing their employees with health insurance. In fact, 98 percent of manufacturers provide health insurance benefits to their employees. Unfortunately, rising costs and burdensome mandates under the Affordable Care Act have made it increasingly difficult for manufacturers to do so.

Furthermore, there is an additional looming health care threat set to take place unless Congress acts to repeal it now. The Health Insurance Tax (HIT) is a particularly burdensome provision that was included in the ACA, but implementation was delayed until 2018 by Congress. If implemented, this tax would significantly raise the cost of health care and provide an additional burden to employers who are already struggling to provide employees with health insurance.  Rising health care and insurance costs are already a top business challenge for manufacturers, and small manufacturing employers cannot handle another cost. 

Thankfully, legislation was recently introduced to permanently repeal the HIT. Manufacturers thank Representatives Kristi Noem (R-SD) and Kyrsten Sinema (D-AZ) for their leadership in introducing this legislation to offer needed relief for smaller manufacturers who want to maintain a healthy workforce and continue doing right by their employees.

We urge Congress to consider this important legislation and to include it in the upcoming budget reconciliation package. 

Ask your Congressperson to cosponsor H.R. 246, a bill that will repeal the HIT.