Why do you think this is a good idea? Why is taxing any benefit a good thing?
When the employeesrealize they have to pay $500 a month in taxes on their gold plated insurance benefit, they might negotiate to get the employer out of the medical insurance business, and buy their own.
Then, they’d buy sensible policies, not over consume medical care (which drives up costs) and take better care of themselves, because private insurers charge different rates based on risk.
Imagine people signing up for the policy that requires a $500 copay for MRI scans. We’d see far fewer instances of people getting scans for a headache. (”No thanks, Doctor, I think I’ll be OK.”)
The distorted tax treatment of medical insurance benefits causes this to be a less healthy nation with inflated health care costs.
Taxing all benefits equally makes sense.
When the employeesrealize they have to pay $500 a month in taxes on their gold plated insurance benefit, they might negotiate to get the employer out of the medical insurance business, and buy their own.
Then, they’d buy sensible policies, not over consume medical care (which drives up costs) and take better care of themselves, because private insurers charge different rates based on risk.
Imagine people signing up for the policy that requires a $500 copay for MRI scans. We’d see far fewer instances of people getting scans for a headache. (”No thanks, Doctor, I think I’ll be OK.”)
The distorted tax treatment of medical insurance benefits causes this to be a less healthy nation with inflated health care costs.
Good luck with choosing a health care insurance carrier. They will be out of business like Chrysler and GM. You forget who is running the show and what the end-game is.
Self pay? Choice? Sorry but that is not what is going to happen. The taxes will be on the employer who will forced to drop the insurance and then take up a GOVERNMENT-run health insurance program. Physicians will not be able to take self-pay patients.
I suggest you read “The Plan” by Rohm Emanuel or “Critical” by Tom Daschele. After you have read these books, come back to me and tell me you think taxing benefits (either employer or employee side) will help health care costs!
BTW, I just paid $638co-pay for MRI for daughter—state of art equipment—best, newest facility in the State. I think there are only a few Magnetic Imaging machines in ALL of Canada btw. Oh, lest you think it was a frivolous MRI, daughter has a herniated disk.