The Health Care industry has been an ever moving ocean since the dawn of the Affordable Health Care Act, and it appears that both sides of the political spectrum (Democrats and Republicans) are looking to make further changes. Election season is in full swing, and the closer we get to November, the closer we get to understanding what both sides inevitably want. Today the Republicans have delivered their ideas in a document called “A Better Way” (click here for the link).
At Buettner Insurance we like to be pioneers and make sure that the newest information is available to our clients, so this post is both a general update, and a focus on how a portion of “The Better Way” may effect employers and employees moving forward.
A Better Way – Removing Employer Exclusion for Health Insurance
The proposal, “A Better Way” (which we will refer to as ABW from now on), is looking to either cap or fully remove the employer exclusion.
What is the Employer Exclusion?
The employer exclusion allows employers/employees to exclude employer sponsored health insurance from their gross income. We can obviously see why the employer exclusion is so beneficial – it keeps costs down for both employers and employees.
How ABW would Effect Employers and Employees Moving Forward
ABW would either cap or completely destroy the tax savings we currently have from the employer exclusion, thus making health insurance more expensive due to the higher tax burden. While this new information was released today, please do understand that many things can happen between now and when this proposal will be voted on, including possible changes and/or the complete removal of such ideas. Stay tuned, and we will keep you all updated!
If this can effect you, feel free to reach out to your representatives and follow this link
Thank you for reading, and have a great day!
Additional Disclaimer – Although I am an Insurance broker and a professional in the field, the Health Care laws are ever-changing, especially in the age of the Affordable Health Care Act, and the laws, information, opinions, or understandings that I have written about may be obsolete by the time you come across them and I take no legal responsibility for what actions you may or may not take because of it. To keep yourself safe, please seek updated professional advice, because changes are happening and I would like to keep everyone safe from any misleading or dead information. Please check out the “Terms and Conditions” page for more information and/or bookmark my blog for upcoming changes and updates to the ACA. Thank you for reading, and have a great day!