Tax Employer Provided Healthcare?

[LivingAlmostLarge]

For those with employer provided healthcare would you be for or against taxing the employer provided healthcare benefit? Why? It's something suggested that would make healthcare much more free market.

Do you think employers would provide more income to compensate or would employees have to suck up the cost? This benefit is regressive and apparently a huge problem in the US system.

I'm for it. I think it would prove how costly health insurance in the US is and it wouldn't lower the costs. Instead it would allow employers to shift more cost to the employees and I think it might force people to reexamine how they view a government run system.

I think we should do it to everyone.

[creditcardfree]

If this is based on Paul Ryan's plan, then yes I would be for. Makes really good sense to me!

[bigdaddybus]

Here is the approach that my company takes, and I appreciate it a great deal.

They take the lowest full time salary we offer and calculate what a person on the exchange would pay for health coverage. That is the cost that my company pays towards each persons health insurance (regardless of salary) and leaves each employee with the same out of pocket costs as a entry level employee.

So everyone in the organization pays the same for healthcare, be it new hire or executive. We have seen a 55% increase in premiums the last 2 years.
(25% this year and 30% last year) My company is making millions less by following this approach, but we are a mutual company and my company still provides a pension and other perks to retain talent. I see this as just another perk my company supports to keep employee turnover low and keep employees happy.

So I am not in favor of the govt taxing this option out of existence for my employer.

[LivingAlmostLarge]

CCF you and I both would be taxed heavily. I think the military shouldn't be exempt so if they are paying your premium 100% and it's $1k/month or more we'd be taxed on that. I find it interesting that both of us are okay with being taxed on our plans.

[creditcardfree]

Currently employers are given a tax break by providing insurance to employees. The Paul Ryan plan wants to provide that tax break to the the employee directly instead. This way the insurance and the tax benefit don't have to be tied to the employer. I'm all for a more open market.

Here is a YouTube video with him explaining it briefly.

[LivingAlmostLarge]

I like the idea of decoupling the insurance to jobs. I prefer socialized system, but this way is very appealing because it allows people more freedom to leave jobs. But I suspect that it won't be very popular but I have my doubts companies will increase people's wages to compensate for the additional income if they have to tax the premium amount the company pays.

it would however i think go hand in hand with privitizing medicare. CCF even if it costs you more you are for taxing the insurance plans right?

[sv2007]

It's an incentive for employers to provide the benefit, just like 401ks.

Frankly, I'm all for small government and 0 welfare (well, except for the handicap/disabled). This way, everybody will work hard and reach higher.

So, anything that reduces gov involvement in our lives the better; this includes fewer laws like special exemptions for employer benefits (just pay more wage and let the employees buy whatever they want).

[LivingAlmostLarge]

I wonder though if people will be upset over the taxing of these employer plans or do people want to do away with them? I doubt the company will pay us $24k extra a year, I checked on our w-2 what it cost.