McCain’s health plan: A threat to employer plans?

AP/Yahoo News, July 7, 2008
Republican Presidential candidate John McCain has proposed that everyone buying health insurance get a refundable tax credit. At the same time, he would treat employer contributions toward health insurance like income, meaning workers would have to pay income, but not payroll, taxes on it. Democratic nominee Barack Obama says the plan would "shred" the employer-based system that provides health insurance to about 158 million workers. While most health analysts won't go that far, both liberals and conservatives say McCain's approach would strengthen the individual and small-group insurance market.

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