During January 2007 State of the Union, President George W. Bush proposed a new change in tax legislation that could have the effect of reducing health care costs for millions of Americans. According to the Wall Street Journal, the government has not taxed employer-provided health insurance benefits, but it gives smaller tax breaks, or none at all, many people who buy insurance themselves outside the workplace. The tax system is especially unfair to employees who work without benefits, experts say. Indeed, Mr. Bush proposes to eliminate the imbalance by giving everyone the same deduction - $ 15,000 for families, $ 7500 for singles.

The Treasury Department estimates that the change would make a net increase of five million in the number of Americans with health insurance. The health insurance rates have been pushed to the low competition in recent years due to increased price transparency that the Internet has brought the health insurance business. What used to be a process of days or even weeks to get up to date, the health insurance rate quotes is now something that can be done in less than a few minutes online with a few mouse clicks.

President Bush has declared that a family without insurance earning $ 60,000 can get a total tax savings of about $ 4500 under the proposed plan. This includes $ 2250 of income tax savings and an equal amount of savings in payroll taxes. This type of tax will certainly help those who are on the fence about seeking health insurance to make the jump to finding affordable health insurance coverage individually. Furthermore, it is estimated that health savings accounts (HSA’s) continue to grow in popularity because they offer tax advantages that will complement the proposed tax law changes. HSA tax benefits along with the tax bill of health insurance can lead to changes in almost all Americans can afford a health insurance plan.