Researchers Estimate Health Tax Break Costs

Exemptions for employers’ purchases of health coverage are costing state and federal governments about $208 billion in tax revenue this year, with federal tax breaks accounting for $185 billion of the total and state tax breaks accounting for $23 billion, the researchers estimate.

The average total tax subsidy is about $1,573 per worker with single coverage and $3,825 per worker with family coverage, the researchers report.

The average subsidy per covered worker is $3,283 at establishments where the median income is more than $23.07 per hour, and $2,268 at establishments where the median income is less than $10.43 per hour, the researchers estimate.