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Democrats eye tax on insurers to fund broader health reform package

Democrats eye tax on insurers to fund broader health reform package Cars queue for Covid-19 testing at Hartford Hospital’s drive-through sampling site on Hudson Street. Tapping into frustrations over the rising cost of health coverage and a lack of access to care, Democratic lawmakers in Connecticut are planning a package of reforms aimed at reducing expenses for people who buy their health insurance through the state’s exchange and making coverage more affordable for small businesses. At the center of the proposal is a plan to revive the Health Insurance Providers Fee, more commonly known as the Health Insurance Tax – a tax on carriers created under the Affordable Care Act to help fund federal and state marketplace exchanges. Congress repealed the federal tax on insurers in 2019; the rollback is effective this month.

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