Assemblyman Dante Acosta introduced a bill on Thursday that aims to lower the cost of healthcare for Californians.
Assembly Bill 782, named the Healthcare Insurance Fairness Act, will eliminate the current deduction minimum of 7.5 percent and allow all taxpayers, not just business owners, to deduct 100 percent of their medical expenses in California. The state bill won’t affect federal taxes.
“At the end of the day, this is about fairness and equality,” Acosta said in a statement to The Signal. “Businesses that pay for insurance get to write those costs off. Why should families and individuals not have the same right?”
Acosta said the majority of people believe healthcare is a right, but it is taxed as if it is a luxury. He said this bill will reinforce that healthcare should be treated as a necessity.
“Thankfully, no matter what happens in Washington, this bill helps create some stability and helps make healthcare more affordable for every person, regardless of their situation,” he said.
The bill will make medical insurance more affordable by using pre-tax dollars for those buying their insurance from Covered California or a privately purchased health insurance plan that meets the federal minimum.
“This legislation is meant to help balance healthcare costs as well as level the playing field for those who do not receive employer-based health insurance,” Acosta said in a statement. “California families know the incredible challenge of balancing rising healthcare costs with their other expenses.”
Currently, the bill has been coauthored by only Republicans, which include Senators Joel Anderson and Andy Vidak and Assembly members Rocky Chavez, Randy Voepel, Marie Waldron, James Gallagher and Jordan Cunningham.
According to Acosta’s team, the bill has been offered for co-authorship in every office.