Sheltering Employee Premium Contributions from Tax Using “Section 125 Plans” (2008)

Principal Investigator: Mark Hall, JD, Wake Forest University

This study will evaluate three different states’ approaches to using section 125 plans to reduce the costs of health insurance (Indiana, Massachusetts, and Missouri). Specifically, the study will examine section 125 plans in the context of their affordability, sustainability, and their efficiency. Affordability will be measured by the reduction in cost of insurance. Sustainability will be measured by level of adoption, use, and acceptance by employers, employees, and insurance agents. Administrative efficiency will be measured by the costs of program administration for both employers and regulators. This will be a mixed-method (quantitative and qualitative), comparative case study analysis, consisting principally of descriptive data and in-depth interviews. Data will include state survey data, administrative data and claims data.

Publications

Using Payroll Deduction to Shelter Individual Health Insurance from Income Tax
(February 2011, Article)

Paying for Individual Health Insurance through Tax-Sheltered Cafeteria Plans
(Fall 2010, Article)

Section 125 Plans in the Post-Reform Environment: Issues for Individual Insurance
(June 2010, Issue Brief)

Section 125 Plans for Individual Insurance and HIPAA's Group Insurance Provisions
(January 2009, Issue Brief)