Republicans propose to limit Corporate Tax Deductibility of health insurance!

Thanks to Keith Zuckerman of PGP for this information:
House Republicans released their healthcare plan last week and it is very misguided in our opinion. It would attempt to repeal the law but keep some main provisions of the law. Dependents would continue to be covered to age 26 and no preexisting conditions would be allowed to be not covered as well as not being allowed to drop enrollees from coverage. But the most controversial aspects are limiting the cap on what employers can deduct for health insurance premiums, which would threaten the current system of employer provided health care and give people tax vouchers to go into the individual marketplace. In most markets that would be a mess as the individual plans are very limited in scope and don’t have many of the high quality facilities that  people come to this area from all over the world to receive world class treatment. The individual marketplace in New York is a mess with carriers losing hundreds of millions of dollars in it and limited choices in provider selection verses the employer provided system that allows you to use the best hospitals in the world in our market and cross state lines many times to receive treatment. The New Jersey and South Carolina individual markets are a little better, but not much. Also they would allow people to cross state lines to find coverage which would result in a very litigious environment as people would not know what they are purchasing.  Currently no individual plans allow you to cross state lines, so we are not sure how that would work, especially since healthcare costs vary widely by region.

It just goes to show, it doesn’t matter what side of the house you are on, it is very tough to create good policy when you do not know what you are voting on or proposing. We spend time lobbying and talking to elected officials and they just don’t truly understand the cost of healthcare and the business of healthcare.