UPI: Insurers oppose employer tax-break cuts

[highplainsdem]

http://about.upi.com/products/health_business/UPI-20051012-033607-6215R


Insurers oppose employer tax-break cuts
By TODD ZWILLICH
WASHINGTON, Oct. 12 (UPI) -- Health insurers have criticized a White House advisory panel's proposed recommendation that Congress eliminate tax breaks for employer-sponsored medical coverage.

The President's Advisory Panel on Tax Reform apparently had reached a consensus Tuesday on a package of upcoming recommendations, including ending the unlimited tax exemptions on health insurance currently enjoyed by companies and their workers.

Federal law provides tax breaks to companies that offer medical insurance and does not tax workers on the value of the benefit, but panelists indicated they would recommend that Congress cap tax exemptions on the benefits for both workers and their employers as a way to moderate enthusiasm for even richer benefits that could drive up healthcare costs.

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The proposal sparked a fast reaction from health insurers, whose main trade group suggested Wednesday that supporting the issue could hurt 2008 presidential candidates.

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[meegbear]

1. "Supporting the issue could hurt 2008 presidential candidates"?!?

Glad to see the industry has their clients best interests in mind.

[Tempest]

2. Of course they oppose the cuts

Less tax cuts to employers - less employers offering health insurance to employees + less people getting health insurance on their own = less money for insurance companies.

They're voting with their pocketbooks.

[jmowreader]

4. We should definitely stand with the insurers on this

The guy I used to work for only did things for his employees because he'd get tax breaks for them. I know he's not the only one.

[1932]

7. It's not so straightforward.

Any time a good sold on the marketplace is tax deductible, the price of that good is likely to be higher because of the tax break.

I agree that people should have low-cost insurance, but I'm not sure creating a system that shifts profits from the national tax revenue purse to the hands of private insurance companies is the best way to do that.

[Coastie for Truth]

3. With the e-mails to employees across the economy warning

"Your premiums and co-pays are going up, your salary isn't." and GM/Delphi and United Airlines on the ropes --- they see a Universal Government/Single Payer Health System on the horizon.

[salin]

5. duh! There goes millions of accounts - because individuals

except the wealthy, really don't have an extra 5,000 to 12,000 a year to self-insure. Hurts the insured, hurts the insurance industry - and would hurt the economy (more money spent on medical expenses - that are not insured = higher costs due to lack of preventative care, and thus less on consuming.)

[1932]

6. ...because it's a taxpayer-subsidized profit for them.

If the tax credit disappears, then they'll probably have to lower prices to match the new, lower price point. Consumers will be in the same boat, but profits will be lower (and tax receipts will be up).