Health Care in the Vice Presidential Debate:Half-Baked Alaska

It must be disconcerting to health care economists to see one of their pet peeves about the inequities of the employer-based insurance system abused by the Republicans. I'm referring to the tax deductibility of health insurance premiums. Gov. Sarah Palin repeated Sen. John McCain's promise to give every American household a $5,000 check to buy health insurance. They would raise the money to fund the program by repealing the deductibility of employer-based coverage. I can't recall if she gave one of her trademark winks when she said it, but she certainly gave an enthusiastic nod. Health care will become just like Alaska! The government will be sending you money every year so you can go out and buy your own insurance. There is an argument that can be made in favor of repealing tax deductibility. Like the home mortgage... [read full story]