Quality health insurance would be unaffordable for many Ohioans if a new tax passes

Ohio's dismal 44th place in national health value demonstrates a harsh reality: We face higher medical expenses and poorer health outcomes than most other Americans. And things will get even worse if Congress adopts a new federal law to tax employer-sponsored health plans as if they are wages. The scheme would reduce paychecks and increase costs for Ohio's workers and their families.

The Washington, D.C., politicians and special interests advocating for this tax are engaging in a deceptive dance. They claim it only targets expensive health plans, but their policies fail to keep pace with the realities of our society. In truth, such taxes would quickly apply to nearly all employer-provided insurance plans, squeezing middle-class families and small businesses already struggling with rising healthcare costs.

By ignoring the broader economic impact and focusing on misleading narratives, these proponents risk harming the very people they claim to protect. It's a political dance that prioritizes short-term gains over long-term societal well-being.

For working-class families, this new tax could lead to reduced coverage or benefits and smaller paychecks.

This burden comes at a time when wages are failing to keep pace with the rising cost of living. Recent data reveals that employees in four out of Ohio's 10 most common occupations earn such low median wages that a family of three or more qualifies for federal food aid. Meanwhile, due to inflation, the average Ohio household now spends an extra $950 each month on essentials compared to January 2021.

In a state with nearly 250,000 private-sector businesses employing close to 5 million workers, about 3.2 million employees, or about 64% rely on health coverage from their employers. If enacted, this tax would increase the cost of health coverage, forcing more hard-working individuals and their families to pay more for health care, often when they need it most.

As healthcare costs rise, wages stay stagnant. This reality, coupled with increasing living expenses and inflation, means Ohioans' household budgets are strained more than ever. Reduced consumer spending power could dampen local business vitality. Meanwhile, employers may trim health benefits to avoid the tax cap, which could diminish productivity and workforce retention. Together, this federal tax could undercut Ohio's appeal to businesses, harm the health of the state's residents, and slow economic development.

Ohio stands at a critical juncture where the proposed federal tax on employer-sponsored healthcare plans could have profound and lasting effects on the state's economy and its residents.

Ohioans are not just statistics in a healthcare debate—they are families struggling to make ends meet, workers striving to provide for their loved ones, and communities trying to thrive despite recent economic setbacks. The proposed federal tax on employer-sponsored healthcare plans isn't just a policy; it's a potential threat to the very fabric of our state.

Imagine the single mother working to keep her family afloat, only to face higher healthcare costs that could mean less food on the table or fewer opportunities for her children. Picture the small business owner, already navigating a tough market, forced to cut back on healthcare benefits for loyal employees just to avoid punitive taxes. These are real scenarios that could unfold in Ohio.

In a state where healthcare is already too expensive, a federal tax on employer-provided health insurance could make insurance unaffordable for many Buckeye State residents.

Our leaders in Congress owe it to us to reject plans to slap onerous taxes on health insurance so Ohioans can access affordable healthcare without fear of financial ruin.

Scott Pullins is an Ohio-based attorney, public affairs counselor, and taxpayer advocate. For further information, please visit www.scottpullins.com.