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Tax Preference for Employer-Sponsored Insurance

Under the current tax code the amount employers spend on health insurance is tax deductible and not considered taxable compensations; similarly, employees’ contributions toward their premiums can be made with pre-tax dollars. Individuals purchasing insurance on their own do not benefit from the same preferential tax treatment.

Inpatient Prospective Payment System (IPPS)

Medicare's system of paying for inpatient hospital care based on a set price for that diagnosis (DRG) that is then adjusted for factors such as…