Wednesday, July 22, 2009

Taxing Healthcare Benefits Shortsighted

A tax on employer-provided health benefits is extremely short-sighted. Rather than pay the tax, many employers would simply trim the benefits they offer. This means the actual revenues the government receives from the program will be far less than projected, and it will also lead to less coverage for employees, greater long-term health complications, reduced quality of life. About the only upside is higher profits for employers who now get away with lower premiums and can blame the government. This too, is short-term, as doctors would suffer from lower payments and seek redress.

Cut coverage for over-the-counter drugs, but enhanced prescription coverage? Does this make sense? Who says prescription drugs are better or more important than OTCs? So now, instead of covering an $11 OTC, you want people to go to the doctor ($75) and get the prescription version ($35) so it will be covered?

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