Posted: Oct 14, 2005 By: Deborah Alpert

Subject: Removing Tax Protection from Employer Provided Health Care

Comment: I understand that we are facing tough times in many areas economically, but to target the cost of medical coverage by removing the favorable tax treatment seems fairly ludicrous. After all, our current President continually talks about having to find ways to cover the uninsured (as to all of the other politicians). Yet the currently insured are beginning to be pushed to become uninsured from an inability to continue to pay the price. Deductibles, copays, contributions and even previously covered items are all up as far as the cost to the consumer. Cost shifting is constantly occurring from the employer to the employee. If the favorable tax treatment is changed, resulting in a 15% to 30% increase to employees, some employees are going to find that they can no longer afford their employers plan. Two things will then happen--they will either be uninsured or they will need to find catastrophic only coverage. Both of these actions will lead to potential for medically related debt. Tell me how that will impact our economy? Certainly not in a positive way. I suggest that some of the government fat be looked at before the necessity items are attacked.