A Federal Tax Credit to Encourage Employers to Offer Health Coverage

Many firms that employ low-wage workers cannot afford to offer an employee health plan, and many of the uninsured work for such firms. This article makes the case for an employer tax credit, administered by the Internal Revenue Service, as a way to extend health coverage to uninsured workers and the...

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Main Authors: Jack A. Meyer, Elliot K. Wicks
Format: Article
Language:English
Published: SAGE Publishing 2001-05-01
Series:Inquiry: The Journal of Health Care Organization, Provision, and Financing
Online Access:https://doi.org/10.5034/inquiryjrnl_38.2.202
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spelling doaj-4aea8a4ddcce4354841a195d196279252020-11-25T03:15:28ZengSAGE PublishingInquiry: The Journal of Health Care Organization, Provision, and Financing0046-95802001-05-013810.5034/inquiryjrnl_38.2.202A Federal Tax Credit to Encourage Employers to Offer Health CoverageJack A. MeyerElliot K. WicksMany firms that employ low-wage workers cannot afford to offer an employee health plan, and many of the uninsured work for such firms. This article makes the case for an employer tax credit, administered by the Internal Revenue Service, as a way to extend health coverage to uninsured workers and their families. The permanent, fixed-dollar, refundable credit would be available to all low-wage employers (those with average wages of $10 per hour and less), including those already offering coverage. The credit would be graduated depending on average wage: the maximum credit would equal 50% of the cost of a standard benefit package; the minimum would equal 30% of the package. It also would vary by family size and could be used to cover part-time and temporary workers. Participating employers would be required to pay at least 50% of the health insurance premium, proof of which would be shown on firms' tax returns. The paper provides justification for this approach. It closes with a discussion of strengths and weaknesses of this approach and alternative design features.https://doi.org/10.5034/inquiryjrnl_38.2.202
collection DOAJ
language English
format Article
sources DOAJ
author Jack A. Meyer
Elliot K. Wicks
spellingShingle Jack A. Meyer
Elliot K. Wicks
A Federal Tax Credit to Encourage Employers to Offer Health Coverage
Inquiry: The Journal of Health Care Organization, Provision, and Financing
author_facet Jack A. Meyer
Elliot K. Wicks
author_sort Jack A. Meyer
title A Federal Tax Credit to Encourage Employers to Offer Health Coverage
title_short A Federal Tax Credit to Encourage Employers to Offer Health Coverage
title_full A Federal Tax Credit to Encourage Employers to Offer Health Coverage
title_fullStr A Federal Tax Credit to Encourage Employers to Offer Health Coverage
title_full_unstemmed A Federal Tax Credit to Encourage Employers to Offer Health Coverage
title_sort federal tax credit to encourage employers to offer health coverage
publisher SAGE Publishing
series Inquiry: The Journal of Health Care Organization, Provision, and Financing
issn 0046-9580
publishDate 2001-05-01
description Many firms that employ low-wage workers cannot afford to offer an employee health plan, and many of the uninsured work for such firms. This article makes the case for an employer tax credit, administered by the Internal Revenue Service, as a way to extend health coverage to uninsured workers and their families. The permanent, fixed-dollar, refundable credit would be available to all low-wage employers (those with average wages of $10 per hour and less), including those already offering coverage. The credit would be graduated depending on average wage: the maximum credit would equal 50% of the cost of a standard benefit package; the minimum would equal 30% of the package. It also would vary by family size and could be used to cover part-time and temporary workers. Participating employers would be required to pay at least 50% of the health insurance premium, proof of which would be shown on firms' tax returns. The paper provides justification for this approach. It closes with a discussion of strengths and weaknesses of this approach and alternative design features.
url https://doi.org/10.5034/inquiryjrnl_38.2.202
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