Anti-health reform activists continue to fight reform with misinformation. There’s an email circulating now with a false claim about health care reform and W-2s. It says that consumers will see their taxes go up because of a provision of PPACA, the new federal health reform law.
The email says that consumers will be charged higher income taxes because their W-2s will now show the value of any health insurance benefit they receive from their employer.
Like most myths, this one builds on something true – next year, W-2 forms will show the value of employer-provided health care benefits. But this is actually helpful information; many consumers have no idea what their employer is paying for their coverage.
Then the rumor jumps to a false conclusion. While the value of the health care benefit will be printed on the W-2, it will not be included in a consumer’s calculation of taxable income. As a White House blog post debunking the email said, “you will absolutely not pay taxes on these benefits.”
Filed under: COBRA, Employer Sponsored Health Insurance, Insurance reform, Premiums Tagged: | insurance
