HSA 4321 Lecture Notes - Lecture 19: Health Reimbursement Account, Employee Benefits, Adjusted Gross Income
Document Summary
Policy simulation: remove tax exclusion for health insurance: 37 percent drop in spending for those that continue to offer coverage. 43 percent overall drop in spending on health insurance. Tax cap proposal: suppose that rather than eliminating the tax exclusion of eshi, the congress decided to cap the current tax expenditures at 2% of adjusted gross income. Employer-sponsored health insurance exclusion: keep them all but limit the combined magnitude. Aca (cid:862)cadillac ta(cid:454)(cid:863: beginning in 2018 the aca imposes a 40% tax on the value of eshi above ,200 for single coverage & ,500 for family coverage. Strictly, eshi + hras + hsas + fsas. In 2018 approximately 16 percent of plans would be affected and health insurance spending would be reduced by 0. 7: but , by 2029, Health insurance spending would be reduced by 3. 1% The cadillac tax would raise billion in tax revenue between 2020 & 2029. 75% of employer sponsored plans would be affected.
