<nobr>Oct 13, 2008</nobr>

Senators Call for Greater Disclosure of Health Insurance Costs to Workers

Senators Max Baucus (D-MT), Charles Grassley (R-IA), Ron Wyden (D-OR), Mike Enzi (R-WY), and Ben Nelson (D-NE) on October 7 released a discussion draft and are seeking public comment on legislation that would provide for greater disclosure of health insurance costs to workers. The Senators said that better informing workers about what they pay for health care and yearly cost increases may help to control health care costs.

As many employees are unaware of the amount their employer pays for their health insurance coverage, the legislation would require that an employer disclose the amount of money it pays for an employee's health insurance coverage on the employee's annual Form W-2. To the extent that the employee receives health insurance coverage under multiple plans, the employer would disclose the aggregate value of such coverage (excluding the value of a health flexible spending arrangement).

The Senators said that experts argue that this lack of transparency results in inefficient choices of health coverage, leading to increased health care spending, and that making the cost more transparent could eventually help to control health care costs.

Public comments on the draft bill will be accepted through December 31.

Websites:

Senate Finance Release and Summary

Discussion Draft of Legislation

Back to Previous Page