Tuesday, April 15, 2014

Governor Jindal's Health Reform Proposal: Pros & Cons

Gov. Bobby Jindal (R-LA) has joined the number of Republicans with an alternative health reform. His Freedom and Empowerment Plan doesn’t mince words on repealing Obamacare:

Unfortunately, like the Republican Study Committee’s American Health Care Reform Act, Jindal’s proposal replaces the current exclusion of employer-based tax benefits with a standard tax deduction. Although he does not quantify the dollar amount, he proposes that it increase with inflation.

A standard deduction for health benefits has problems similar to the current exclusion of employer-based benefits from taxable income:

  • It is regressive, giving more tax relief the higher your income tax bracket;
  • It is not helpful to the half of the population that does not pay income tax (and thereby exacerbating demand for Medicaid).
Read the entire column at The Independent Institute's Beacon blog or John Goodman's Health Policy Blog.

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