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Prescribing Better Under Bush's Health Plan

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Publication Date: January 2007

Publisher(s): Tax Policy Center

Author(s): C. Eugene Steuerle

Special Collection: John D. and Catherine T. MacArthur Foundation

Topic: Banking and finance (Taxation and tax policy)

Keywords: Elderly; Health Insurance; Tax Policy; Tax Distribution and Economic Trends

Type: Report

Abstract:

The nation spends more than $250 billion annually on tax incentives for workers to buy health insurance, and the cost is rising fast. Nonetheless, 47 million people lack coverage. By any standard, we aren't getting our money's worth. This article discusses President Bush's proposed health plan, which would give everyone the same income tax deduction as long as they purchased health insurance, and the potential problems with this policy. It suggests that a properly designed voucher is a better vehicle for correcting the existing problems with health insurance.