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Tax Credits for Private Insurance

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It is often suggested that the best way to cover the uninsured would be to provide them tax credits to buy private insurance. But tax credits simply launder public money through wasteful private insurance system that takes a one-third cut of every dollar. With the cost of private insurance policies skyrocketing ($10,000+ for family coverage), the size of tax credits would have to be substantial to help the uninsured get coverage. Moreover, studies have shown that offering these credits barely makes a dent in the number of uninsured because it gives employers the incentive to drop coverage for their employees.

In this brief, PNHP Senior Health Policy Fellow Dr. Don McCanne details the case against using tax credits to cover the uninsured.

Click here to read the brief
(pdf)