12.16.19

Gardner Secures Repeal of Costly Obamacare Taxes

Senator applauds deal to repeal Health Insurance Tax and Medical Device Tax

Washington, D.C. – U.S. Senator Cory Gardner (R-CO) today applauded the announcement of an agreement to repeal the costly Health Insurance Tax (HIT) and Medical Device Tax with passage of the year-end federal spending package. Gardner is championing efforts to safeguard Coloradans from these taxes and previously introduced S. 172, a Senate bill to stop the HIT from raising costs on Coloradans. 

“Today’s announcement is a major victory towards fostering innovation, protecting Colorado jobs, and fighting rising health care costs for Colorado families and small businesses. A tax on medical devices is a tax on innovation, on small businesses, and on our collective ability to discover the new medical breakthroughs that could improve the lives of patients,” said Senator Gardner. “Congressional action to repeal the Health Insurance Tax will mean lower costs for approximately 142 million Americans. These are issues I have worked on going back to my time in the House of Representatives, and I’m proud to be a leader in the successful effort to protect Coloradans from these costly taxes.”

About the Health Insurance Tax:

The HIT is a fee to health insurers on their health policy premiums that increases costs on families, small businesses, seniors, Americans with disabilities, and state Medicaid programs. A recent report from the Centers for Medicare and Medicaid Services found that the HIT was the primary driver of the rise in health care costs when it was in effect in 2018. Estimates show that repeal of the HIT will save families hundreds of dollars a year.

In January, Senators Gardner, Jeanne Shaheen (D-NH), John Barrasso (R-WY), Doug Jones (D-AL), Tim Scott (R-SC), and Kyrsten Sinema (D-AZ) introduced S. 172, the Health Insurance Tax Relief Act of 2019, to suspend the HIT for two years. Last week, Senator Gardner led a bipartisan group of colleagues in sending a letter to leadership of the U.S. Senate and U.S. House of Representatives requesting relief from the HIT. Gardner is also an original cosponsor of S. 80, the Jobs and Premium Protection Act, which would fully repeal the HIT. 

About the Medical Device Tax:

Obamacare created a 2.3 percent medical device excise tax. Colorado is home to a rapidly growing medical device industry, which directly employs nearly 10,000 individuals and contributes $6.4 billion to Colorado’s economy. Senator Gardner is an original cosponsor of S. 692, the Protect Medical Innovation Act of 2019, to repeal the Medical Device Tax. In December, Gardner sent a letter to the leadership of the U.S. Senate and U.S. House of Representatives urging a delay or full repeal of the Medical Device Tax.

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Cory Gardner is a member of the U.S. Senate serving Colorado. He sits on the Energy & Natural Resources Committee, the Foreign Relations Committee, the Commerce, Science, & Transportation Committee, and is the Chairman of the Subcommittee on East Asia, the Pacific, and International Cybersecurity Policy.