Issue 3: May 2003

Tax Subsidies for Private Health Insurance: Who Currently Benefits and What Are the Implications for Policy?

Policy-makers are considering a variety of new tax credit proposals to expand health insurance coverage. Understanding how current tax subsidies work and their role in supporting employer-sponsored insurance (ESI) is important when designing such policies. This brief presents essential information about the structure and distribution of existing tax subsidies for ESI and the implications for new policy options.

Some Key Questions Addressed in This Issue:

• How does the federal government subsidize private health insurance?
• Who benefits from the current tax subsidies for ESI?
• What are the advantages and the disadvantages of the current approach?

Download Our Products:

Policy Brief (140 KB: approx. 21 seconds with a 56k modem)
Charts