Subject: Taxing Employee Health Benefits Comment: This is one of the most ludicrous ideas to come out of Washington, and they can dream us some ridiculous ones. I am in the employee benefit field. Health benefits have become so costly for the employer that some of our clients have been forced to discontinue health plans for their employees because of the continuously escalating cost. My firm offers a choice of two health plans to its employees. Family coverage under a simple HMO is $14,127.84 annually, of which the employee contributes $3,536 toward the cost. Under the PPO plan, which has a $3,000 family deductible, the annual premium is $22,539.96 for family coverage. The employee would have to contribute $11,258 toward the cost, but no employees with families selected the PPO option BECAUSE THEY CANNOT AFFORD IT. Does everyone on capital hill think the average salary exceeds six figures? When it comes to a choice of putting food on the table, having a roof over your head or paying for medical coverage either through payroll deduction or backhanded taxation, what do you think the average worker is going to choose? |