The sliding-scale percentage credit Adjusts to individual needs and circumstances Flexible credit available to everyone as a percentage of total health expenditures. Credit increases as a family consumes a greater proportion of their income on health expenses. Total health expenditures include both insurance premiums and any qualified medical expenses as basically defined by section 213 of the IRS code. Expenses must be incurred during a coverage month. Other provisions An individual may instruct his employer to adjust his withholding to reflect the credit.
Employers can still deduct all contributions as a business expense.
Employers will receive a credit for the employer-portion of the payroll tax on the formerly excludable amounts. Easy reconciliation procedures are established with information return requirements from insurers and employers. Anti-fraud measures require the inclusion of taxpayer identification numbers and disallow the credit for a two year period to those who improperly claim the credit. The combination credit will encourage everyone to purchase insurance, especially the 42 million uninsured. Drives insurers to offer the best product at a quality price.