From the American Health Policy Institute – 2016
Employer-provided health insurance has been excluded from income and payroll taxes for more than 60 years. In fact, the American Health Policy Institute notes in this 2016 report that this tax exclusion reduces the cost of health insurance by nearly 32 percent for the 177 million Americans who receive health care benefits through their employers. In the midst of certain political change however, this very exclusion is under threat.
Benefits of the Tax-Preferred Status of Employer-Sponsored Health Insurance