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Tax Exemption on Health Insurance Premiums, Health is Wealth Indeed!

Sacramento – Under a new proposal released by Gov. Arnold Schwarzenegger recently, workers in California can now enjoy health insurance with a double benefit - to their// health and wealth. Employees will be permitted to pay health premiums which will be exempted from tax.

The proposal is an important government agenda to ensure that heath insurance is reachable to the approximate 6.5 million Californians who are unable to afford the coverage presently. With the new proposal the employees could save nearly 40% of the expenditures on health insurance, as the money spent on insurance will be exempted from tax.

The governor also encouraged health insurers to offer incentives to the insured to maintain a healthy lifestyle. For instance, offering an incentive to sign up with a gym and such other sops. This would in turn benefit both the state and people, reflecting in lesser healthcare costs. The tax benefit through health insurance will encourage more employers to patronize insurance schemes.
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