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Ayotte Backs Legislation to Repeal Obamacare Provisions that Hurt Small Businesses

Press Release

Location: Washington, DC

Continuing her efforts to provide New Hampshire's small business owners with relief from the burdensome mandates in President Obama's health care law, Senator Kelly Ayotte (R-NH), is cosponsoring legislation that would repeal some of the law's costliest and most onerous provisions. The Small Business Health Relief Act (S. 1049), introduced by Sen. Jon Kyl (R-AZ), would repeal the Health Insurance Tax, one of the largest tax increases contained in the health care law, and the employer mandate that requires small businesses to purchase insurance for employees.

"Business owners across New Hampshire have told me that the tax increases and burdensome mandates that were enacted as part of Obamacare are driving up their health care costs and discouraging them from hiring new workers," said Ayotte. "I'm committed to fully repealing the health care law, and this legislation is an important step toward eliminating some of its most egregious provisions."

The Small Business Health Relief Act would:

* Repeal the Health Insurance Tax (HIT): HIT represents a tax increase of $87 billion on American families and businesses, and will affect nearly 90 percent of the nation's small businesses. According to the Joint Committee on Taxation, repealing the HIT could "decrease the average family premium in 2016 by $350 to $400."
* Eliminate employer mandate: The employer mandate provision requires small businesses to buy insurance and dictates how much they must purchase. This provision forces employers to spend money they don't have, reduces flexibility and choice, and raises employer costs. According to one study, nearly 1/3 of employers said their company is likely to stop offering health insurance to employees in 2014 when the provision kicks in.
* Lift restrictions on Flexible Spending Accounts: Obamacare caps annual contributions to consumer-driven health plans at $2,500, effectively limiting the amount of money that consumers are able to save and set aside for health expenses and potentially forcing consumers to pay more out of pocket costs. S. 1049 would repeal this cap.

This legislation is supported by the U.S. Chamber of Commerce and the National Federation of Independent Business.

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