Publication Date: August 2009
Publisher: Tax Policy Center
Author(s): Leonard E. Burman; Sarah Goodell; Surachai Khitatrakun
Research Area: Banking and finance
Keywords: Health Insurance; Federal Budgets & Fiscal Policy; Income and Wealth Distribution; Tax Distribution and Economic Trends
Policymakers are considering modifications to the tax treatment of employer-sponsored insurance (ESI) as a way to raise revenue to help pay for health reform and provide incentives to reduce health care costs. Understanding how current subsidies work is important to assessing health reform proposals. This brief presents essential information about the structure and distribution of existing tax subsidies for ESI and the implications for policy options.