Reforming the U.S. Health Care System
Table of Contents
- Introduction
- I. Universal Coverage
- II. A Health Care Safety Net For The Uninsured
- III. Tax Fairness
- IV. A Rational Role For Employers
- V. Preserving Employer Options, But Rewarding Good Choices
- VI. Incentives To Reduce Waste And Inefficiency
- VII. Options For The Self-Employed
- VIII. Solution To The Special Problems Of The Uninsured
- IX. Health Insurance And Workfare
- X. The Role Of State And Local Governments
- XI. An Alternative To Medicaid
- XII. Funding Reform
VII. Options For The Self-Employed
A. Giving The Self-Employed A New Option: Taking A Tax Deduction For The Purchase Of Health Insurance Or Claiming A Tax Credit
- Currently, the self-employed get a partial deduction for the purchase of health insurance, and eventually they will get a 100 percent deduction.
- As an alternative, this plan allows the self-employed to take a tax credit.
B. Allowing The Self-Employed Who Claim A Tax Credit To Make Roth MSA Contributions
- Under the current system, the self-employed may contribute to a conventional MSA, provided they have catastrophic insurance.
- Under this plan, the self-employed who elect the tax credit will be able to make deposits to a Roth MSA instead.
- They will be allowed to contribute to either a conventional MSA or a Roth MSA, but not both during the insurance period.
