FISCAL NOTE
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to allow a federal adjusted gross income deduction for the amount spent on a high deductible health plan purchased in conjunction with a health savings account.
According to our interpretation, any revenue consequences associated with tax deductions for high-deductible, non-group health insurance costs should be minimal, particularly if the availability of such a deduction effectively encourages some employers to drop the traditional employer-provided health insurance coverage. Employer provided health insurance costs are deductible for federal and state income tax purposes.
There would be no additional administrative costs associated with passage of this bill.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2009
Increase/Decrease
(use"-") |
2010
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The stated purpose of this bill is to allow a federal adjusted gross income deduction for the amount spent on a high deductible health plan purchased in conjunction with a health savings account. According to our interpretation, any revenue consequences associated with tax deductions for high-deductible, non-group health insurance costs should be minimal, particularly if the availability of such a deduction effectively encourages some employers to drop the traditional employer-provided health insurance coverage. Employer provided health insurance costs are deductible for federal and state income tax purposes.
There would be no additional administrative costs associated with passage of this bill.
Memorandum
The stated purpose of this bill is to allow a federal adjusted gross income deduction for the amount spent on a high deductible health plan purchased in conjunction with a health savings account.
Rather than enacting a new reducing modification from federal adjusted gross income in W. Va. Code § 11-21-12(i), this bill enacts a “deduction for the amount spent on a high deductible health plan.” It is unclear as to whether “the amount spent” relates to the amount of premiums paid for the plan, the amount of medical expenses not covered by the plan, the amount deductible under the plan, or any combination of those items.
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us