Does the Affordable Care Act’s
provision requiring health insurance policies to covers medication and
procedures that some employers believes are contrary to their religious
convictions, constitute an infringement of the employer’s religious freedom?
Provision of health insurance
to employees is a fringe benefit and a form of indirect compensation. One
solution regarding a conflicted employer’s dilemma regarding the exercise of
their religious freedom is for such employers not to provide not to provide
coverage to employees, but instead give them a dollar amount equivalent to what
they would have contributed to their health insurance insurance. The employees
can, then, if they choose, purchase their own health insurance, just as they
are free to purchase any other commodity with the money they are paid for their
labor.
When an employer provides
health insurance for their employees, that benefit is not taxed. In order to
make up for the additional income tax the employees would have to pay when they
buy their own health insurance, the federal government can and should make the
cost of non-employer provided health insurance tax deductible. The net effect
on tax revenue would be the same either way.
