Tweet This

Tax Preference for Employer-Sponsored Insurance

Under the current tax code the amount employers spend on health insurance is tax deductible and not considered taxable compensations; similarly, employees’ contributions toward their premiums can be made with pre-tax dollars. Individuals purchasing insurance on their own do not benefit from the same preferential tax treatment.

Medicaid Crowd-Out

When the availability of Medicaid hurts the market for other insurance products. Generally refers to Medicaid crowding out the long-term care insurance market.