The Tax Consequences of Fixing Surprise Medical Billing are Slight

10 Pages Posted: 30 Jun 2020

See all articles by Ike Brannon

Ike Brannon

The Jack Kemp Foundation

Chester Kowalski

Capital Policy Analytics

Date Written: May 18, 2020

Abstract

A selling point of recent attempts to end the incidence of "surprise" medial billing arising from the inadvertent use of out-of-network providers has been that it would increase tax revenue by reducing insurance costs, which would serve to boost (taxable) wage income. However, that increase in income for employees is offset by an equivalent decrease in taxable income for providers, who are in a higher tax bracket. The offsetting tax revenue loss may completely offset any ancillary tax gains, we submit.

Keywords: taxes, healthcare, surprise billing, scoring

JEL Classification: I11, I13, H22

Suggested Citation

Brannon, Ike and Kowalski, Chester, The Tax Consequences of Fixing Surprise Medical Billing are Slight (May 18, 2020). Available at SSRN: https://ssrn.com/abstract=3604576 or http://dx.doi.org/10.2139/ssrn.3604576

Ike Brannon (Contact Author)

The Jack Kemp Foundation ( email )

1200 New Hampshire Avenue N.W.
suite 800
Washington, DC 20036
United States

Chester Kowalski

Capital Policy Analytics ( email )

2012 Wyoming ave nw suite 301
washington, DC 20009
United States
202-309-0893 (Phone)

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