Health insurance

FederalState

Eligibility for the exclusion for employer-provided health insurance should be determined based on the employer's coverage rules. 

When structured correctly, the exclusion for employer-sponsored health insurance may be an important method of encouraging health insurance coverage. Any revenue derived from the taxation of amounts above that threshold should be used to finance health insurance for families and individuals with low incomes or who are uninsured. (For discussion on implementation challenges, see Individual- and Employment-Based Group Plans.