Comments on: Separating Healthcare from Employment

By: Jared Echols

Jared Echols — Fri, 09 Feb 2007 01:17:51 +0000

I think employer based insurance isn’t a very good idea, so I agree with the author in that regard. We would be better off if individuals were required to purchase a health insurance policy. They would be more apt to shop for the plan that makes the most sense to them, employers wouldn’t have to be discriminatory, and those who can’t afford it could get medicaid.

By: Carolynn Duncan

Carolynn Duncan — Wed, 31 Jan 2007 21:45:31 +0000

Besides all of the that, there’s the practicality that people switch jobs so often, but their health needs and risks remain constant. And to boot, there’s always the 30/60/90 day wait period, etc.

Why should car insurance be mandated and provided at such a “cheap” rate (in comparison), whereas health care is ridiculously priced and tied to an extremely finicky workplace where people change jobs as easily as their socks?

By: Blake Snow

Blake Snow — Wed, 31 Jan 2007 07:41:01 +0000

Yeah, I pay $290/month for very good coverage for a family of three. However, the value of that $290 is huge in the eyes of a very supportive wife, so it’s money very well spent. And deductible to boot.

By: Joshua Steimle

Joshua Steimle — Tue, 30 Jan 2007 22:26:57 +0000

I wouldn’t know, I can’t afford my own benefits so I’ve pushed the expense off to my wife who works for the state by getting on her plan. I save $500/month or more by sticking it to the taxpayer, plus I get a plan that’s better than anything I could buy myself unless I wanted to pay $1,200 per month.

By: Blake Snow

Blake Snow — Tue, 30 Jan 2007 21:59:06 +0000

Interesting. I understand you can’t deduct health premiums at the company level for owners, only employees. Since I’m only an owner in my company, a tax professional advised me to buy and deduct health premiums at the individual level as a self-employement itemization thus having the same net affect on my personal earnings.

By: Joshua Steimle

Joshua Steimle — Tue, 30 Jan 2007 16:53:58 +0000

You are correct sir, at least partially. Can those who aren’t self-employed but purchase their own insurance get a tax deduction for it? Either way, that’s the last time I trust Mike Leavitt and Robert Reich to give me my information. From the article referenced above:

“Currently, Americans who get health insurance through their employer pay no tax on the value of the insurance while those who buy insurance on their own get no tax break and pay for insurance with after tax dollars.”

And from a Marketplace radio piece – “The [current] system doesn’t cover the self-employed, the largest and fastest-growing category of worker.”

I’ve reread these pieces to see if I’m misunderstanding something or taking them out of context, but they truly appear to be misinformed or misinforming.

Not that any of this changes the point of it all, but accuracy is good. Thanks for the correction Blake.

By: Blake Snow

Blake Snow — Tue, 30 Jan 2007 16:15:47 +0000

“However, if you are self-employed or your employer doesn’t give you health benefits and you go and buy them yourself, you don’t get any tax break.”

False, Josh. I deduct health insurance premiums at the 1040 level (self-employement itemization).