Financial Incentives: Tax Benefits for New Health Insurance Enrollees

Instead of relying just only on penalties to convince people to enroll in health insurance, the government should consider creating incentives, such as tax benefits. Since open enrollment ends March 31, 2014 and the deadline for IRS tax filings is April 15, 2014, the government could provide tax benefits for new health insurance enrollees. For instance, to reach the goal of 2.7 million new enrollees, a tax deduction of a fixed amount, such as $50-100, for each newly insured person would only cost $135-$270 million.

Such a small amount could be offset by penalties from those who do not enroll in health insurance. Despite the initial loss, there would be significant long-term benefits because these enrollees would be offsetting high costs from older Americans and ensuring the success of the ACA. The government could even consider raising penalty fines to finance a portion or all of the tax benefits for early adopters of health insurance.

Full proposal: www.camlifesci.blogspot.com

How likely are you to make Mic your go-to news source?

Bohan Liu

After graduating from MIT, I work in the healthcare industry as a pediatric researcher and consultant. I am especially interested in healthcare innovation and working with startups to address the biggest healthcare needs.

MORE FROM

CNN's Van Jones allegedly says the Trump Russia stories are "a big nothing burger"

He's the second CNN insider this week to apparently denounce the network's Russia coverage.

Conservative columnist Bret Stephens joins MSNBC

Stephens will remain a columnist at The New York Times.

Department of Homeland Security announces new airline security rules

The new measures could help end the electronics ban.

Democrats on Neil Gorsuch's first Supreme Court term: "We've got another Scalia"

Some say Gorsuch's even-handed performance during his confirmation hearings "might be more an act than it was a real persona."

Fox News just hired US Rep. Jason Chaffetz as a correspondent

Chaffetz is headed to Fox.

Here are the key rulings from the Supreme Court's busy June term

The court's term ended with rulings on immigration, the First Amendment, LGBTQ rights and more.

CNN's Van Jones allegedly says the Trump Russia stories are "a big nothing burger"

He's the second CNN insider this week to apparently denounce the network's Russia coverage.

Conservative columnist Bret Stephens joins MSNBC

Stephens will remain a columnist at The New York Times.

Department of Homeland Security announces new airline security rules

The new measures could help end the electronics ban.

Democrats on Neil Gorsuch's first Supreme Court term: "We've got another Scalia"

Some say Gorsuch's even-handed performance during his confirmation hearings "might be more an act than it was a real persona."

Fox News just hired US Rep. Jason Chaffetz as a correspondent

Chaffetz is headed to Fox.

Here are the key rulings from the Supreme Court's busy June term

The court's term ended with rulings on immigration, the First Amendment, LGBTQ rights and more.