Last year, in a bipartisan effort, Congress suspended the Health Insurance Tax, which provided a reduction in premiums for all small-business owners and their employees, seniors, and other consumers. NFIB was part of a coalition of business groups supporting the effort to repeal the health insurance tax.
On Sunday, February 16, however, the New Mexico House of Representatives, on a 41-25 vote, passed House Bill 278, which would deny that relief for small businesses struggling under the weight of rising healthcare costs.
House Bill 278 wipes out the relief provided provide by Congress by increasing the New Mexico health insurance premium surtax from 1% to 3.25%, an increase of 2.25%
With this additional surtax increase, New Mexico consumers will be paying the highest health care premium insurance taxes in the country. The U.S. Dept. of Health and Human Service’s Agency for Healthcare Research and Quality found less than 30% of small businesses in 2018 were able to offer health insurance to their employees.
Small business health insurance costs have increased by 74 percent over the past decade, making it more difficult to offer benefits to employees. The reason more small-business owners can’t offer health insurance is cost. Those small businesses fortunate enough to afford health insurance for their employees will be hit with this state health care insurance surtax, instead of realizing a reduction in rates provided by congress.
Representative Rebecca Dow (R-Truth or Consequences) introduced an amendment that would have exempted small businesses from the premium surtax, but without discussion, it was tabled. See video below.
NFIB is urging its members and all small-business owners to call and email their state senators and them to stand with small business by opposing HB 278—the 2020 session of the Legislature will end shortly.
