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Tax Benefits for Health Insurance: Current Legislation (CRS Report for Congress)

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Release Date Revised Feb. 6, 2006
Report Number IB98037
Authors Bob Lyke and Christopher Sroka, Domestic Social Policy Division
Source Agency Congressional Research Service
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Summary:

The 109th Congress will be presented with numerous proposals to change federal tax benefits for health care. Incremental changes under consideration include a generally available tax credit for lower middle income families to purchase health insurance and additional incentives for individuals to establish Health Savings Accounts. Help for small businesses that offer insurance is also being discussed. Proponents of these and other measures generally argue that new tax benefits would reduce the number of uninsured and address efficiency and equity problems; opponents claim they often would primarily benefit higher income taxpayers and do little for most without coverage. Some argue that expanding government programs such as Medicaid would be a more effective use of government money. Proposals for more fundamental changes might emerge from discussions about general tax reform.
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