Proposals to tax health benefits, sometimes touted as a way to help reduce the deficit, could have unintended consequences, according to a survey by the Employee Benefit Research Institute.
Kansas City Star: Possible Health Tax Is A Concern
More than half of American workers indicated they would look for a cheaper health insurance plan or even drop coverage if Congress decides to tax workers' health benefits. The proposal, a possible means to pare the federal deficit by raising revenue, was tested by the Employee Benefit Research Institute in its 2012 Health Confidence Survey. If the value of employment-based health benefits became taxable, 26 percent surveyed said they would switch to a less costly plan, 21 percent said they would want to shop for coverage directly from insurers, and 9 percent said they would want to drop coverage. Thirty-nine percent said they would continue with their current level of coverage (Stafford, 12/20).