Home > Past Briefings > Briefing Detail Page
 

Briefing Detail Page

Change Text Size:   Smaller Text Size   Larger Text Size   Default Text Size    

Tax Treatment of Health Insurance: A Primer


Friday, December 05, 2008

The United States tax system subsidizes the purchase of employer-sponsored health insurance for more than 160 million non-elderly people at a “cost” of approximately $200 billion a year. This tax subsidy is a major reason why most Americans have health insurance coverage through either their own employer or that of a family member. In recent months, the tax treatment of health insurance has gained a lot of attention – both during the presidential campaign and in health reform debates in Congress.

What is the current tax treatment of employer-sponsored health insurance? How does the tax treatment of health insurance impact employers? How does it impact employees? Do some workers benefit more than others from the current tax subsidies? Does altering the tax treatment of health insurance have the potential to expand or diminish coverage? Will cost containment efforts lead policy makers to consider altering the tax treatment of health insurance?

To address these and related questions, the Alliance for Health Reform and the Kaiser Family Foundation sponsored a December 5 briefing. Panelists were: Larry Levitt, Kaiser Family Foundation and Robert Lyke, Congressional Research Service. Ed Howard of the Alliance moderated.

Speakers

 Ed Howard, Alliance for Health Reform, Moderator
 Larry Levitt, Kaiser Family Foundation, Speaker
 Robert Lyke, Congressional Research Service, Speaker
(Click on the camera icon to see a video of the speaker's presentation.)

Transcript, Event Summary and/or Webcast and Podcast

Transcript: Tax Treatment of Health Insurance: A Primer (Adobe Acrobat PDF), 12/5/2008
Event Summary: Tax Treatment of Health Insurance: A Primer (Word Document), 12/5/2008
Full Webcast/Podcast: Tax Treatment of Health Insurance: A Primer

The transcript, full webcast and podcast for this briefing, as well as videos of individual speakers' presentations, are provided by Kaiser Family Foundation.

Speaker Presentations

Larry Levitt Presentation (PowerPoint), 12/5/2008
Robert Lyke Presentation (PowerPoint), 12/5/2008

(If you want to download one or more slides from these presentations, contact us at info@allhealth or click here for instructions.)

Source Materials

The Tax Expenditure for Health: Update for 2007 (PowerPoint), The Lewin Group, 4/29/2008
Tax Benefits for Health Insurance and Expenses: Overview of Current Law and Legislation (Adobe Acrobat PDF), Congressional Research Service, 4/28/2008
The Tax Exclusion for Employer-Provided Health Insurance: Policy Issues Regarding the Repeal (Adobe Acrobat PDF), Congressional Research Service, 11/21/2008
Sourcelist (Adobe Acrobat PDF), , 12/5/2008
Speaker Biographies (Adobe Acrobat PDF), , 12/5/2008
Tax Treatment of Health Insurance: A Primer (Word Document), , 12/5/2008

Offsite Materials (briefing documents saved on other websites)

Employer Health Benefits: 2008 Summary of Findings (Adobe Acrobat PDF),Kaiser Family Foundation, 9/24/2008
Health Reform Through Tax Reform: A Primer, Health Affairs, 6/1/2008
Tax Subsidies for Health Insurance, Kaiser Family Foundation, 7/11/2008
Health Insurance and Taxes: Can Changing the Tax Treatment of Health Insurance, Employee Benefit Research Institute, 9/15/2007
Tax Expenditures and Employee Benefits: Estimates from the FY 2009 Budget (Adobe Acrobat PDF),Employee Benefit Research Institute, 2/15/2008
Health Care: How does the employer-sponsored insurance exclusion affect coverage?, Tax Policy Center, 4/9/2008
Health Coverage Tax Credits: A Small Program Offering Large Policy Lessons, The Urban Institute, 2/15/2008
How the government currently helps people buy health insurance: The employee tax break on job (Adobe Acrobat PDF),American Medical Association, 1/7/2008
The Importance of the Current Tax Treatment of employer-Sponsored Health Coverage for Employees (Adobe Acrobat PDF),National Business Group on Health, 7/31/2008
Tax Expenditures for Health Care, Senate Finance Committee, 7/30/2008
Statement by Katherine Baicker, Senate Finance Committee, 7/31/2008
Call to Action: Health Reform 2009, Senate Finance Committee, 11/12/2008
Using Section 125 Premium-Only Plans to Expand Health Coverage (Adobe Acrobat PDF),Mathematica Policy Research, 10/9/2008
Statement of Roger Feldman, House Committee on Ways and Means, 9/23/2008

Photos

Larry Levitt of the Kaiser Family Foundation explains how the tax system subsidizes health care in two ways. (20 minutes) From the Dec. 5 briefing cosponsored by the foundation.

 


Sister Carol Keehan on Health Law Enrollment Challenges this Year


Video 3:00

A new Alliance for Health Reform video features Sister Carol Keehan of the Catholic Health Association of the United States addressing the challenges of quickly enrolling millions of Americans for health insurance this fall. Open season begins October 1 of this year, yet she says that up to 85 percent of those who will be newly eligible for Medicaid or for subsidies to buy private insurance in state-based exchanges don't know it.  FULL TRANSCRIPT

Read More 


Jonathan Blum on CMS Efforts to Keep Medicare Spending Growth Down


Video (2:54)

Jonathan Blum, acting principal deputy administrator and director of the Center for Medicare at the Centers for Medicare and Medicaid Services (CMS), addresses the slower growth of Medicare spending over the last few years, and what his agency is doing to try and continue the trend. “There are promising signs that this strategy to change the payment system, to change the payment models, to focus on waste and abuse, is paying off," he said. "We are taking a whole new approach to addressing fraud in the program. Much more data resources, much more on the ground reaction. We have seen dramatic spending declines in areas of spending, such as home health and durable medical supplies that historically fueled lots of the fraud.”  FULL TRANSCRIPT

Read More 

Updated Toolkit -- The Sustainable Growth Rate: Seeking a ‘Doc Fix’ at the Edge of a Fiscal Cliff


A new Alliance toolkit tells you what you need to know about the current policy debate about the $138 billion Medicare physician payment problem – the "doc fix." The public is keeping a close eye on federal budget deficit reduction efforts this year, including potential automatic spending cuts initially mandated by the Budget Control Act of 2011. Yet one component of the debate has been largely ignored - the Sustainable Growth Rate (SGR). Indeed, because of the SGR, physicians in January 2013 faced a 26.5 percent cut in Medicare reimbursement rates. Last-minute congressional intervention delayed the cut until January 2014 as part of the American Taxpayer Relief Act of 2012. Without intervention, physicians will receive a 25 percent reimbursement cut in January 2014. At the same time, according to the most recent Congressional Budget Office (CBO) estimates, if Congress and the president agree to permanently eliminate the SGR, the deficit will grow by another $ 138 billion over 10 years. The cost of repealing the SGR has fallen significantly since last year, spiking a new interest in permanently fixing the problem.

To download, click here.


Read More 

Illinios Health Law Implementation: Race to the Starting Line


Health care experts recently kicked off a series of briefings for reporters addressing complex issues that states face leading up to major 2014 health law changes. Illinois will have a federal partnership insurance exchange next year, but may take more control after that, Deputy Gov. Cristal Thomas said at the first briefing in Chicago. Georgetown University insurance expert Sabrina Corlette, hospital leader David DiLoreto and journalist Bruce Japsen also spoke at the briefing, held Dec. 12 at Columbia College, and sponsored by the Association of Health Care Journalists, the Alliance for Health Reform and the Robert Wood Johnson Foundation.

Read More


Douglas Holtz-Eakin: Health Care Spending Lull Only Temporary


Video (3:11)

A new Alliance for Health Reform video features Douglas Holtz-Eakin of the American Action Forum, and a former director of the Congressional Budget Office, arguing that recent slower spending growth in health care won’t continue.

"We also saw a slowdown in the mid-90s, and we all declared victory and it came right back. I think next year we’ll see a noticeable uptick. There will be lots of new people entering the insurance markets because of the exchanges and the subsidies that come along with them, and those subsidies are very generous. … These are an invitation for people to get coverage and to buy more health care. I think that’ll place a lot of pressure on spending."

FULL TRANSCRIPT

Read More 


Uwe Reinhardt Questions Bundled Payment Savings Prospects


Video (2:58)

A new Alliance for Health Reform video features Princeton’s Uwe Reinhardt questioning whether bundling payments for medical services might actually lead to higher – not lower – costs.

"The ACO's, the accountable care organizations, could create local monopolies that could dictate to you what that bundled price would be, and some of us fear that bundled prices might be even more than what the fee-for-service for that bundle would be today. … You really should align all the payers and say, 'Let us jointly negotiate with the ACOs what those bundles should be so that they cannot divide and rule and sort of make us on the buy side weak.'"

FULL TRANSCRIPT

Read More 

Copyright 1997-2013 Alliance for Health Reform
1444 Eye Street, NW, Suite 910 Washington, DC 20005-6573      202-789-2300      202-789-2233 fax      info@allhealth.org      Sitemap