Debate Over How To Replace Obamacare Comes to a Fork In the Tax Code

“When Capitol Hill Republicans and other conservative health policy analysts focus on developing viable “replacement” alternatives to Obamacare, they usually start with changing how the tax code subsidizes purchases of health insurance coverage. The two main proposals would expand the benefits of the current tax exclusion for employer-sponsored insurance (ESI) premiums to other insurance purchasers – either through tax deductions or through tax credits – and then limit its maximum amount per insured person. But neither one by itself strikes the right balance between efficiency, equity, and sustainability.”