https://www.wsj.com/articles/trumps-healthy-tax-break-11562021565
By the left’s account you’d think the Trump Administration’s only ambition on health care is to rip insurance from the poor and sick. So note that a Health and Human Services rule finalized last month represents a dramatic expansion in health-care choices for those who may have limited insurance options.
The Trump Administration finished regulations expanding health reimbursement arrangements, often known as HRAs. The arrangements will allow an employer to give a worker tax-exempt dollars to buy a health-insurance plan in the individual market. Such arrangements have existed in some form since the early 2000s, but the Obama Administration used the Affordable Care Act to limit them.
The practical effect of the new rule is to extend the tax advantage for employer health care to individuals who purchase their own insurance. This would help to rectify an injustice in the tax code, which favors employer insurance. The better route economically would be to nix the employer tax exclusion, but Republicans in 2017 couldn’t even agree to nibble at the tax preference as part of doomed bills repealing and replacing ObamaCare. Alas.