« Lawsuit helps Health Savings Account owners | Main | NY Times article on Health Savings Accounts »
October 28, 2005
Tax Reform Panel looks at Health Insurance Benefits
A bipartisan tax reform panel, appointed by President Bush, is exploring ways to make the tax code simpler, fairer, and more geared toward promoting economic growth. One of the things they are looking at is health insurance benefits.
Currently, employees receive these benefits tax-free, yet if an employee buys health insurance on his own, he does not get a tax-deduction. This tax benefit disproportionately benefits high-income workers (48% of the benefits go to those earning $75,000 or more).
The panel may recommend curbing the amount of tax-free health insurance contributions employers can make, and/or give a tax deduction to those workers paying their own premiums.
Loosening the bond between employer and health insurance is a positive thing. In today's mobile economy, most people would be much better off owning their own health insurance, so that if they leave an employer they don't risk losing their coverage. Tax changes that make taxation of health insurance fair to all is a positive thing.
Find more information on health insurance and Health Savings Accounts at HSA for America.
Posted by Wiley Long at October 28, 2005 12:14 PM