How Federal Tax Dollars Support Health Care Plans

The discussion around health insurance subsidies has intensified, especially with recent reductions impacting enrollees financially. Most insured individuals receive some form of federal subsidy, from Medicaid and Medicare to employer-sponsored insurance, which collectively costs taxpayers over $1.1 trillion annually. Employer-sponsored plans provide significant tax breaks that benefit higher-income workers more, but this system raises concerns about escalating healthcare costs and lost tax revenue. While modifications to these tax breaks are not currently proposed, the increasing federal deficit may prompt future changes.