Home
  Go 
Advanced SearchTopics Login Become a Member 

Locate A Chapter

HFMA News - Friday, July 11, 2008

HFMA NEWS


Friday, July 11, 2008
Tax Subsidies for Health Insurance Cost U.S. More than $200 Billion: Kaiser Report

Today almost 160 million people in the United States obtain health insurance through an employer in large part because the tax system subsidizes the purchase of employer-sponsored coverage. The current subsidy costs the U.S. Treasury more than $200 billion in lost revenue because premiums for employer-provided health coverage are excluded from income taxes and from payroll taxes.

A new issue brief by Kaiser Family Foundation researchers, Tax Subsidies for Health Insurance, uses examples of workers with different wage earnings to illustrate how the current tax code affects families depending on whether they have health coverage, and whether that coverage is provided through their employer. By excluding the value of employer-sponsored health benefits from taxable income, the current law generally provides a larger subsidy to higher-income families, since higher-income workers pay federal and state income taxes at a higher marginal tax rate than lower-income workers. Read the issue brief.

posted on 7/11/2008 6:46:09 AM (CST)  Permalink   
National Survey of Mayors Highlights Impact of Growing Healthcare Crisis on City Budgets and Services

A report released in June by Families USA spotlights the concerns of mayors nationwide, who say that cities are on the front lines of the nation’s growing healthcare crisis. Skyrocketing healthcare costs for municipal employees and the rising tide of uninsured people provided with safety net services threaten to force cuts in other basic city services, such as police and fire protection, schools, parks, and the repair of city streets and other infrastructure.

The key conclusion of the report, America’s Health Care Crisis: Cities on the Front Lines, is that mayors and city councils must aggressively deal with healthcare challenges on a daily basis, while federal officials delay action on meaningful reform.

Among the survey’s findings, cities are experiencing new demands for health clinics, hospital emergency departments, mental health services, and problems affecting schools. Also, cities are seeking significant increases in eligibility levels for Medicaid and the State Children’s Health Insurance Program. Read the report.

posted on 7/11/2008 6:45:19 AM (CST)  Permalink