Posted: Oct 14, 2005 By: Cramer

Subject: Health Benefit Tax

Comment: Bad Idea!
I have been involved with the management of health benefits for employees of large public and corporate organizations for many years. I beleieve the case for employer sponsored health care rests on a three legged stool. 1)Network Discounts derived through collective purchase, 2) classic group insurance economics, i.e., level the financial exposure of the individuals in the group, 3)tax incentives for employee and employer. A significant consequence of the trend towards consumerism in health care is the erosion of the 2nd leg. The health benefit tax will obviously erode the 3rd leg. Do we want to make the employer's case for providing health care benefits more shakey than it is already? Can you say uninsured??? The proposed health tax is counter-intuitive to the health care issues facing this country.