[Welcome Industry Radar readers!]
The Georgia legislature is looking at ways to make health insurance more affordable by providing tax breaks to employers & individuals who buy HDHP (high deductible health plans).
As a Georgia resident and agent, this is something that is now on my radar.
In addition to exempting these plans from premium taxes, there are tax breaks.
Small employers under the bill would get a $250 tax credit per enrolled worker, and individuals buying them would get a tax credit.
Tax breaks. Gotta love it, right?
So what's the problem?
The premium tax in Georgia is a whopping 2.5% of gross premium. Eliminating taxes paid by carriers on these policies may generate some savings, but not anything noticeable.
Many who are uninsured do not pay taxes. Others (the young invincible's) pay taxes but see no need for buying health insurance.
This is a step in the right direction but like most other proposals, does nothing to control health care costs.
On a scale of 1 - 10, I give it a 5.