Health Insurance Reform to be Funded through Health Insurance Tax?

July 29, 2009
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Health Insurance Possibly Getting Taxed?

Right now, a debate is going on regarding the new Health Insurance Reform being sold by the White House to the Congress.  According to Kat Pickert in her article, “Taxing Pricey Insurance: No Health-care Cure” on Time.com, the Congress is finding a way to pay for the said reform and that they are actually considering putting taxes on health insurance benefits.

This plan may mean up to one trillion in the next ten years and U.S. citizens are in doubt as to where the government could get such a huge sum of money.  Tax free health benefits have been offered by employers for more than half a century now and most people are quite resistant to change and the convenience that comes with it.

Since about two-thirds of the population is receiving their health insurance through their employers, it might be left that way, except for those who are receiving very expensive elite plans.  Still, this suggestion is not favored either.

With the aforementioned predicament, the Congress is now thinking of taxing health insurance companies instead, while the Senate Finance Committee was reported to be considering taxing insurers who offer the priciest health care plans.  Through this, more tax money shall be generated and cheaper health insurance just might become the new trend.

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