UAW

Employer Health Insurance

Tax Free

UAW Health Care Taxes For All


The members of the UAW who work for the big three auto companies are very fortunate concerning how their health care expenses are taxed. They pay almost no taxes. The premium for their generous health insurance is paid by their employer with dollars that are not counted as income. This means that the employee does not incur any taxes on this generous benefit. Their generous health care benefits do not require a deductible and they have low co-pays. They have drug, vision, and dental coverage. This means that these UAW members have very low out of pocket medical expenses that are paid with after tax dollars.

The big three provides retiree health care benefits including what Medicare does not cover at no tax burden to retired UAW members. Many retired individuals who were self employed or no longer have employer provided health care benefits have to self pay for their medical expenses with after tax dollars.  This adds up to be an unfair burden for these people when compared to retired UAW members.   


Americans who have the minimal health insurance benefits are paying large sums of after tax dollars for high deductibles, high co-pays, and uncovered medical expenses.  Many Americans, probably millions, are self paying for their health insurance premiums with after tax dollars. This means that millions of Americans are self paying for their medical expenses and paying taxes on the income that is used to pay for their medical expenses.  


This unfair taxation results in a great disparity concerning how medical expenses are paid when considering how UAW members pay for their medical expenses and individuals who incur high costs by having to self pay pay their health insurance premiums or high deductibles and co-pays.  


The UAW members who went on a lengthy strike against GM in 2019 were supported by many politicians who stood with the striking workers on the picket lines.  I assume that this show of solidarity was in support of the workers demands to improve their lot. I think that this show of solidarity was fine, but the politicians should show more support for the folks (there are millions) that are not as well off as the members of the UAW who work for the big three. 


In December, 2019, these same politicians voted to repeal the so-called Cadillac tax which the President signed into law.  Shame on those politicians who did not give any tax breaks to those more in need who self pay their medical expenses with after tax dollars.    


I feel that the politicians should start with making the tax burden on medical expenses the same for all Americans.  Why should one group such as UAW members in the above example not be taxed on their medical expenses and other groups who are probably not as well off economically suffering the burden of not getting similar medical expenses tax free?  Those who are self paying their medical expenses with after tax dollars should be able to subtract their medical expenses from gross income before their income tax is calculated.

Please, join me in eliminating this great financial disparity in health care.

Thank you.

Ted Golden, M.D.

tagolden43@hotmail.com 

References:

Unfair Taxation in Health Care

Why The Disparity In Health Care Taxation


Single Payer Health Care or Medicare For All?