This would primarily benefit those who work for small employers who generally do not have access to cafeteria plans. Individual purchasers of health insurance and the self-employed should be able to fully deduct the cost of premiums. And the self-employed will have to wait until 2003 for full deductibility. Changes in tax law would result in greater equity . . . and make coverage more affordable for these purchasers. MSAs Lower Health Care Costs Mandates cost money . . .
Mandates also stifle innovation and hinder the ability of insurers to respond to customers.
While there may be limited societal costs to eliminating some mandates, these should be more than offset by the decrease in the number of Americans who lack coverage and by the increase in affordability for all purchasers. Onerous benefit mandates that drive up health insurance costs should be eliminated or significantly curtailed. Small-group and individual market laws and regulations should be modified and restrictions eased. Liability laws must undergo reform and limits set on damages. Federal requirements on administrative simplification must apply to all players in the health care industry.