ARA helps stop health insurance tax in Connecticut

Jun. 13, 2021

After defeat and repeal of the federal Health Insurance Tax (HIT) at the federal level, many state legislatures have tried to impose the tax on fully insured health insurance plans at the state level. 

Connecticut was one of those states. The Stop the HIT Coalition, of which the American Rental Association (ARA) is a very active member, went to work to oppose this measure. In the final hours of the state's legislative session, Democratic and Republican state leaders passed a bipartisan budget with the agreement not to raise any taxes, including the HIT. Connecticut's Gov. Lamont is expected to sign it.

"We sent a number of letters and personal emails to many state legislators stating our opposition to a state HIT and the negative effect it would have on our members in Connecticut," said John McClelland, ARA vice president, government affairs, and chief economist. "ARA and all other members of this coalition will remain vigilant to continue to monitor this tax on fully insured health plans which would increase premiums."  

The Stop the HIT coalition continues to monitor this activity in all states and has been working in opposition to it in Connecticut for several months. The Connecticut HIT would have increased costs by $480 annually for the average working family. 

"Local businesses, like our equipment and event rental members, can now fully focus on reopening to full capacity without having to worry about this extra tax burden," McClelland said. "They have additional freedom to provide the services their customers need and not have to worry about their employee's health benefits." 

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