Tax Incentives

NAIFA Health & Employee Benefits supports tax credits and other tax incentives for employers to offer coverage, with due consideration being given to the economic capabilities of employers and employees. Such incentives should include but not be limited to:

• Tax-free status of health insurance benefits to employees.
• Deductibility of health insurance premiums paid by employers as a normal business expense.
• Deductibility of health insurance premiums paid by individuals.

NAIFA Health & Employee Benefits believes that health care cost containment should be the focal point for making it possible to provide health care for the poor. We are cognizant that the government may also consider a variety of options for raising revenues for this purpose as well as the need to provide subsidies for low-income employers and employees, including proposals for some possible limitations on the tax incentives listed above. The positive role played by such tax incentives should be given serious consideration when revenue raising options are considered.

To the extent that changes in tax policy are made, funds made available must not be used in any way which would prevent the small group health insurance market from competing with buying groups on a level playing field.

NAIFA Health & Employee Benefits also supports individual tax credit and/or tax deduction proposals, provided Congress does not reduce incentives for employer sponsored plans.