$248 Billion

In a recent Facebook posting, I noted that it's no big deal to me that Ted Cruz is covered under his wife's Goldman~Sachs-provided health care plan.  If I could choose excellent health care coverage through my employer  OR  gilt-edged benefits through my spouse, I'd opt for the latter, too.  My issue was with the negative impact employer-provided coverage continues to have on our nation's health care delivery.  A friend's reply noted that costs of employer-provided health care benefits aren't footed by taxpayers.  Except, they are.

A core reason (among several) why businesses - especially large  ones - continue to support employer-provided health care coverage is due to the MASSIVE tax advantages it provides both the business and the employee.  The value of Ted Cruz' health care benefits is tagged at $20,000 - a sizable amount not included in his wife's taxable income.  And Goldman~Sachs gets to take it, in part or in whole (not sure which), as a business expense write-off.  Win for the employer, win for the employee.  NOT a win for the U.S. taxpayer.

In 2013 alone, it's estimated the U.S. Treasury will be out $248 BILLION ($240,000,000.00) dollars in health care benefits-related lost income & payroll taxes (a whopping 1.5% of the GDP, or more than the government pays for the interest on the federal debt).

 

I thank my friend for stating that tax-payers don't take a financial hit from employer-provided health care benefits.  Would that it was true.