Few have ever heard of "Health Reimbursement Accounts," but they could fundamentally change the nation's health care system - for the better - and destroy the Democrats' case for socialized health care.
Seems like no big deal, right? Except it will start to unravel a 77-year-old policy mistake that is largely responsible for many of the problems the health care system suffers today.
The massive tax subsidy - now valued at more than $300 billion - also encouraged overly generous health plans, because any health care paid by insurers was tax exempt, while out of pocket spending had to come from after-tax dollars.
While health care experts across the political spectrum recognize this mistake, Democrats' response has been to get the government even more involved in health care, with the latest proposal a total government takeover under the guise of "Medicare for All.".
The rise in these "Consumer directed" plans was at least partially responsible for the slow-down in health spending in recent years, according to official government reports, as consumers increasingly started shopping around.
Under the plan, employers will be able to fund tax-free Health Reimbursement Accounts for their workers, who can then use the money to buy an individual insurance plan - thereby taking another step toward fixing the 77-year-old tax distortion.
At the same time, Trump also loosened the federal rules that had needlessly impeded "Association health plans." These are plans that let members of various groups band together to buy insurance.
https://issuesinsights.com/2019/06/19/trump-just-revolutionized-health-care-and-nobody-noticed/
Seems like no big deal, right? Except it will start to unravel a 77-year-old policy mistake that is largely responsible for many of the problems the health care system suffers today.
The massive tax subsidy - now valued at more than $300 billion - also encouraged overly generous health plans, because any health care paid by insurers was tax exempt, while out of pocket spending had to come from after-tax dollars.
While health care experts across the political spectrum recognize this mistake, Democrats' response has been to get the government even more involved in health care, with the latest proposal a total government takeover under the guise of "Medicare for All.".
The rise in these "Consumer directed" plans was at least partially responsible for the slow-down in health spending in recent years, according to official government reports, as consumers increasingly started shopping around.
Under the plan, employers will be able to fund tax-free Health Reimbursement Accounts for their workers, who can then use the money to buy an individual insurance plan - thereby taking another step toward fixing the 77-year-old tax distortion.
At the same time, Trump also loosened the federal rules that had needlessly impeded "Association health plans." These are plans that let members of various groups band together to buy insurance.
https://issuesinsights.com/2019/06/19/trump-just-revolutionized-health-care-and-nobody-noticed/
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