HCS HB 364 -- INCOME TAX DEDUCTION FOR HEALTH INSURANCE PREMIUMS

SPONSOR:  Sutherland (Ervin)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Ways and
Means by a vote of 8 to 0.

This substitute authorizes 100% of the amount paid for
nonreimbursed qualified health insurance premiums to be deducted
from a taxpayer's Missouri taxable income to the extent the
amount is not already included in the taxpayer's itemized
deductions.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of
$2,420,215 to $11,220,215 in FY 2008, $2,429,524 to $11,229,524
in FY 2009, and $2,433,245 to $11,233,245 in FY 2010.  No impact
on Other State Funds in FY 2008, FY 2009, and FY 2010.

PROPONENTS:  Supporters say that 65% of plans currently get a
federal deduction; 18-20% have a cafeteria plan with a federal
deduction; and 20-22% receive no federal benefit.  The bill will
benefit anyone paying their own health insurance and helps level
the playing field.  The bill will increase access to healthcare
and lower the costs of healthcare by reducing the number of
uninsured Missourians.  Any insurance company premiums will be
deductible.  This will help self-insured individuals, working
poor, and first-time workers afford health insurance.

Testifying for the bill were Representative Ervin; Taxpayers
Research Institute of Missouri; Missouri Insurance Coalition; and
Coventry Health Care.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:18 am