GOV. DAVIS: Signs Health Insurance Deduction Conformity Bill
Gov. Gray Davis yesterday signed a measure that conforms to federal law the state health insurance tax deduction for individuals who purchase their own insurance. Currently, federal law allows a 60% deduction, which will rise to 70% in 2002 and 100% in 2003. The current California deduction is 40%. Davis said, "This bill will encourage more self-employed individuals to purchase health care insurance. Currently, self-employed individuals receive a limited income tax deduction for heath insurance premiums they pay. This bill will allow the self- employed to receive the same tax benefits as employees who receive health care insurance purchased by their employers (Davis release, 7/14).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.