SACRAMENTO– California families overwhelmed by the cost of healthcare will be getting some help due to legislation introduced by Assemblyman Dante Acosta (R-Santa Clarita). Assembly Bill 782 will create the Health Insurance Fairness Act, eliminating the 7.5 percent deduction threshold on healthcare, allowing taxpayers to fully deduct the cost of medical insurance premiums under this new deduction.
“California families know the incredible challenge of balancing rising healthcare costs with their other expenses, like housing,” Acosta said. “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. If a business gets this break, why shouldn’t every family in California?”
AB 782 eliminates the current 7.5 percent threshold to begin writing off healthcare costs and replaces it with a zero percent threshold for the cost of purchasing health insurance that meets the federal mandate. Taxpayers would choose between deducting their medical insurance costs under this new deduction or as an itemized deduction for amounts paid in medical care.