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Return to Article: Bill on retiree health insurance premiums re-emerges

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  Why only retired federal employees??? Why not the real tax payers? Govt. employees never add to the tax base as all of the government employees income is from taxes. Give the tax payer a break too.

  Doug Posted February 17, 2008 7:00 PM
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  Every year for the past several years, I send my congresswoman and senator a bill for the amount of additional income tax I had to pay as a result of not having my health insurance premiums paid with pre-tax dollars. I usually get a form letter in reply. This past year I modified my letter a bit. I added that since they have no intention of acting on the proposed legislation, at least be honest and say so. I also said I'm putting aside a like amount and will contribute to whoever runs against them in the next election. I received a different reply from my congresswoman who (correctly) noted that the legislation gets bogged down in committee and unless it passes there, there can be no vote. Write your representatives, especially if they are on the committee.

  Eugene Simmons Posted September 5, 2007 6:21 AM
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  Why would Congress ever treat government retirees equally as Americans? Everyone that pays income taxes can do this except government retirees. congress should have done this over a decade ago. Congress is imcompetent and now has ratings below those of the bottom feeding President. Together they are giving us the worst government of all time in the USA.

  taxpayer Posted August 7, 2007 6:37 AM
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  Section 125 has permitted "employees" to reduce their pay by the amount of their health insurance premiums since 1978. Because retirees, owners of 2%-plus of corporations, partners in partnerships, etc. are not "employees" these individuals have never been eligible to reduce their income by the amount they pay for health insurance.

  Congress should/must amend the tax code to allow retirees to reduce their pension income by the amount of their health insurance premiums. Pension income is not subject to FICA taxes but retirees will still see a reduction in federal and state taxes when they are permitted to reduce their taxable pension income.

  Although everyone is eligible to deduct medical expenses (including health insurance premiums) on their tax return each year only medical expenses exceeding 7.5% of adjusted gross income is deductible. Reducing taxable income produces greater tax savings than the current tax deduction for medical expenses.

  GovExec.com reader Posted February 23, 2007 2:57 PM
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  I wrote my Congressman and told him if he gets just one thing accomplished the remainder of his term, make certain that one thing is voting to pass this bill! I highly suggest to others who support this measure to write their Congressman(-woman) and tell them the same. Just because the Dems control the House, this is by no means a done deal. There are plenty of roadblocks ahead with Republicans clamoring for a balanced budget as an excuse to reject this bill.

  GovExec.com reader Posted February 20, 2007 2:59 PM
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  I didn't see a comment about the fact that the pre-tax dollars authorized for actively working government employees also do not count towards Social Security, so I'll point that out now. I suspect that's why it wasn't made available to the retirees before - because the majority of them are already drawing Social Security, and are no longer working. Thus, their Social Security would not be reduced by pre-tax dollars.

  Larry R. Doane Posted February 20, 2007 1:32 PM
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  If you read your tax forms every year there is a provision to deduct the health care premiums already in Schedule A up to a certain amount. Maybe we can start deducting the whole thing without Schedule A?

  Mike Posted February 20, 2007 12:51 PM
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  My God, Congress may stop discrimination against ex-civil servants and military. What is this world coming to? Go Tommy - make civil servants and military the same as everyone else!

  taxpayer Posted February 20, 2007 6:49 AM
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  "Overshadowed by the President's top two priorities, strengthening (read "eliminating") Social Security and reforming the tax code (read "preserving tax cuts for the rich")." Now that we have a Democratic Congress, we have a chance.

  Mike Suarez Posted February 20, 2007 1:02 AM