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Cap on tax exclusion for employer coverage urged
Modern Healthcare

A controversial new proposal from the Urban Institute to help curb deficit spending by capping the tax exclusion for employer-sponsored health coverage could save hundreds of millions of dollar annually, but skeptics say would come at the expense of dramatically altering the health insurance market.

The report released today by the institute, with funding from the Robert Wood Johnson Foundation, found that setting a cap on the tax exemption for health insurance benefits at the 75th percentile of the total premiums and other medical benefits and indexing it based on the five-year average of GDP growth rate would produce $264 billion in additional revenue over the next 10 years.