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Progressive or Regressive? A Second Look at the Tax Exemption for Employer-Sponsored Health Insurance Premiums

Limiting the current tax exemption on employer-sponsored health insurance premiums could adversely affect individuals who are already at high risk of losing their health coverage, according to this Commonwealth Fund analysis. Evidence suggests that capping the exemption could disproportionately affect workers in small firms, older workers, and wage earners in industries with high expected claims costs.

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