Rewrite insurance & benefits law

Effective in stages with each enrollment wave · Congress; DOL EBSA; Treasury; state insurance commissionersDiscuss this step

IRC §106 exclusion of employer health coverage

endsBy waveFederal tax code

Today

Employer premiums are excluded from income and payroll tax: the largest federal tax expenditure (~$400B/yr incl. payroll).

Under the plan

Ends for UHP-covered services; retained (capped) for supplementary dental, vision, and LTC coverage.

Trade-off

Removes a regressive subsidy worth more to high earners; workers see higher taxable wages instead of tax-free benefits.

Money