Health Care Tax Reform Act (S. 9522) Summary

• Eliminates the 1.75% tax on commercial health insurance policies (accident and health insurance contracts) by phasing it out between 2023-2027, reducing to zero percent in 2027.

• Phases out section 206 assessment on insurance companies over five years, collecting 80% in 2022, 60% in 2024, 40% in 2025, 20% in 2026, and 0% starting 2027.

• Removes health maintenance organizations (HMOs) from the non-life insurance corporation tax category and subjects them to the phased-out health insurance tax instead of the 2% general insurance tax rate.

• Reduces hospital-based health service surcharges through phased percentage allowance reductions from 2022-2026, declining to zero percent by 2026 across multiple payor categories.

• Finds that current health care taxes totaling over $5 billion annually are regressive and increase insurance costs for consumers without relation to ability to pay.