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GOP’s Bill Includes Tax Deduction for Insurance CEOs

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Repeals provision of Obamacare that limited such tax breaks.

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Kevin Lamarque/Reuters

The House Republican plan to repeal and replace the Affordable Care Act includes a tax deduction for health-insurance executives. “Generally, employers may deduct the remunerations paid to employees as ‘ordinary and necessary’ business expenses,” the draft bill, introduced Monday evening, noted. “Obamacare added a limitation for certain health insurance providers that exceeds $500,000 paid to officer, director, or employee. This section repeals the limit on the deduction of a covered health insurance provider for compensation attributable to services performed by an applicable individual starting in 2018.”