For The grAde: Essay 150 words

“The advantage of tax-free, employer purchased health insurance stimulate the demand for comprehensive health insurance coverage” (Feldstein, 2015). Consequently, employees tend to choose premium insurance that provides an easy access to care instead of choosing a lower cost health plans. As healthcare spending continue to increase, the proposal to eliminate or place a cap on employer-purchased health insurance, particularly to higher earning income employees, is being proposed to subsidize funds for lower income earner and to be more conscientious with using unnecessary medical services. Eliminating the subsidy for health insurance and having it taxable only raises the tax bracket for lower income earners, making them pay more taxes. If that so, more people might opt to not buy health insurance, and only seek medical attention for emergency care. According to White, “This would hurt people with less money more than people with more money…would not make health care more affordable.”

Reference

Feldstein, P.J. (2015). Health policy issues: An economic perspective. Chicago: Health Administration Press. Sixth Edition