The cumulative effect of the federal income tax exemption for health insurance could be quite large because:

Question

Quizplus · Accepted Answer

The federal income tax exemption for health insurance causes a secondary effect that increases the quantity of medical care demanded, as individuals are more likely to seek out and use medical services if they do not have to pay for them directly. This can lead to increased healthcare costs and potentially unnecessary medical procedures being performed.

The Cumulative Effect of the Federal Income Tax Exemption for Health