Some economists have proposed making the tax treatment of employer-provided health insurance the same as the tax treatment of individually purchased health insurance and out-of-pocket health care spending.Such changes would make it more likely that

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If tax treatment of employer-provided health insurance is made the same as the tax treatment of individually purchased health insurance and out-of-pocket health care spending, consumers would no longer have a tax incentive to rely on comprehensive, employer-sponsored health insurance plans. This would encourage individuals to pay for routine health care out of their own pockets, making it more likely that they would shop around for cheaper prices, and hence pay prices closer to the actual costs for routine medical care.

Some Economists Have Proposed Making the Tax Treatment of Employer-Provided