January 10, 2025 Newswires

A very bad idea in Congress could cost Idahoans much more on their health insurance | Opinion

Thad Butterworth, The Idaho StatesmanIdaho Statesman

A new scheme coming from Congress threatens to make health insurance unaffordable for Idahoans

A new federal proposal is being pushed to add another tax burden to Idaho’s families. This latest proposal threatens to tax our healthcare benefits as if they were wages.

As if the constant rising inflation and decreasing wages weren’t enough, some lawmakers are now pushing a scheme that will leave struggling Idaho families in even worse shape.

Currently, nearly half of Idaho’s residents rely on the health insurance option offered through their employers. Imagine the shock to Idaho’s economy when our workforce discovers that their take-home pay has been reduced because the insurance they are required to have is now considered “income.”

Idahoans are already dealing with the escalating cost of essentials like gas, groceries, and housing. In total, inflation has cost the average household in the state $34,258 since January of 2021, according to a report released recently by Congress’ Joint Economic Committee.

A tax on health insurance will add an even greater burden to our small business community, which is already left vulnerable by post-pandemic issues. The current cost of health insurance already makes it difficult for most small business owners to provide coverage, and this added burden could stifle growth and hinder job creation in our local communities — particularly in rural areas.

Idaho already faces healthcare shortages and ranks last in the nation for the number of doctors per capita. At only 86 primary care physicians per 100,000 people, Idaho is far below the recommended levels. This proposal to add taxes on healthcare premiums could further harm Idaho’s strained healthcare system, making it even harder to access timely and quality care.

Rural Idaho faces especially tough challenges. Over 60% of hospitals operate in the red and are at risk of financial collapse. These hospitals get by on razor-thin margins and rely heavily on insurance reimbursements to stay afloat. Rural hospitals struggle to provide specialized services due to their limited resources. Increasing costs and reducing coverage could result in these hospitals scaling back further or completely eliminating specialists and critical services.

Unfortunately, the proposal to tax those premiums is a recycled idea that keeps getting circulated by greedy politicians in Congress as a way to raise more money for our already bloated federal government. Rather than living within their means, many in our nation’s capital would rather bankrupt hardworking Americans and destroy businesses rather than curb their out-of-control spending habits.

The proponents of this scheme are trotting out their typical leftist promises that only wealthy people with the most luxurious healthcare packages will be taxed. We’ve heard this promise before. It’s always those of us in the middle class who end up stuck with the bill.

A tax on health insurance will be based on the cost of the premiums. Unfortunately, health care in rural states like Idaho is already expensive, and inflation often outpaces legislative tax caps. So while the proposal might start with taxes on so-called “high-end” health insurance packages, pretty much every working Idahoan will end up paying taxes on their health insurance if this terrible idea is adopted.

New federal taxes are nearly impossible to remove, and the ripple effects of a tax like this would be staggering. The tax would cause health care coverage to decrease, which would result in lower productivity due to increased absenteeism, increased costs from untreated health issues, and further stunt Idaho’s business growth.

As Congress considers taxing insurance premiums, it is crucial that we in Idaho make our voices heard. We need lawmakers to prioritize our health, jobs, and communities over short-term tax revenues. Our representatives in Washington, D.C., should be focused on cutting the bloated federal bureaucracy rather than burdening Idaho households and businesses.

Idahoans are already facing increased expenses and dealing with limited healthcare choices. We cannot afford to gamble with our communities’ health and economy based on hollow promises and extremely short-sighted fiscal expediency.