RL33505
Tax Benefits for Health Insurance and Expenses
April 28, 2008
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Summary
How tax policy affects health insurance and health care spending is a perennial subject of discussion in Washington. The issue is prompted by the size of the tax benefits, particularly the exclusion for employer-paid insurance; by their effect on the cost and allocation of health care resources; and by interest in comprehensive tax and health care reform. President Bush has proposed taxing the insurance that workers receive from employers and providing a new standard deduction for health insurance regardless of whether coverage is obtained through employment or in the individual or small group markets. Tax code changes also figure prominently in many comprehensive health care reform proposals.
