Health and Taxes: An Assessment of the Medical Deduction.
Purchase Print Copy
| Format | List Price | Price | |
|---|---|---|---|
| Add to Cart | Paperback52 pages | $20.00 | $16.00 20% Web Discount |
Indirect tax subsidies to health insurance and medical expenses totaled $3.8 billion in 1970 and will reach $7.6 billion in 1976. These subsidies create incentives to purchase health care through insurance rather than directly. Above $6000 of income most families can obtain a subsidy that exceeds the administrative costs of group insurance policies. Increased health insurance coverage, by reducing the net price of health care, increases the demand for health care and, with limited medical resources, leads to higher hospital and physician prices. The medical deduction under the personal income tax is a last-resort health insurance plan. Despite its income-related deductible and coinsurance parameters, the deduction provides larger benefits to high income taxpayers and limited catastrophic protection. Tax subsidies are distributed in near proportion to income. The study considers several alternative tax policies that would provide greater health benefits to lower income families and increase protection against the expense of catastrophic illness. 52 pp. Bibliog.
This report is part of the RAND Corporation Report series. The report was a product of the RAND Corporation from 1948 to 1993 that represented the principal publication documenting and transmitting RAND's major research findings and final research.
This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.