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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.

Managed Care Organization (MCO)

Organizations that provide managed care but have different business models. The organizations are also made up of a variety of physicians, hospitals and other providers.