Senate Majority Leader Bill Frist, R-Tenn., supports capping the extent to which employer-provided health care coverage is excluded from employees’ taxable income, reports Business Insurance.
In a July 12 address to the National Press Club, Sen. Frist advocated phasing in an unspecified limitation on the tax break, but he did not give any details about how the cap should work. He said that such a change, combined with allowing individuals to fully deduct the cost of health insurance they buy without employer support, would make the health care funding system more equitable.
The tax change was one of several health care-related proposals Sen. Frist outlined. Other changes he advocates include creating a universal electronic health records system, providing tax credits to encourage lower-income people not eligible for Medicaid to buy coverage, and establishing new “lifetime health IRAs” to help pay for health care costs through an individual’s lifetime.
No legislation designed to implement any of these changes has been introduced.