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The Affordable Coverage Coalition, of which ABC is a member, Nov. 21 sent a letter urging members of congress to support H.R. 3367, the Small Business and Family Relief Act, bipartisan legislation that would delay the health insurance tax for two years.

“While our organizations believe this onerous, counterproductive tax should ultimately be repealed,” the letter says, coalition members believe that a two-year delay is the first step toward this objective.

The health insurance tax is set to be put in place on Jan. 1 and would require health insurance companies to pay a new tax on the benefits they provide to individuals, families, small and mid-size employers, beneficiaries in Medicare Advantage and state Medicaid managed care programs, starting at $8 billion in 2014, ultimately making health care more expensive, not more affordable.

The proposed legislation would delay the health insurance tax that is expected to raise the cost of small group family coverage by $360 in 2014 and $6,830 over the next decade for two years until Jan. 1, 2016.

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