Proposal to Tax Health Insurance Would Make Wyoming’s Sky-High Health Care Costs Even More Unaffordable
Wyoming, with its rugged landscapes and resilient spirit, has always celebrated community and a strong work ethic. Our close-knit towns and entrepreneurial drive define who we are. Yet, looming federal policies once again threaten to assault these values by placing undue burdens on our small businesses and hardworking families. I’m referring to a congressional proposal that would treat a portion of employer-sponsored health insurance (ESHI) premiums above a certain value as taxable income.
If Congress implements the scheme, employees and employers will incur a greater tax liability, directly threatening Wyoming's economic stability and social fabric. Proponents in Washington claim the tax is intended to affect only high-cost policies. However, the tax's scope is poised to expand amid inflation and the rising cost of healthcare. This expansion could engulf a staggering portion of Wyoming’s population —approximately half— who rely on ESHI for their healthcare needs.
The implications of this proposed tax are especially dire for Wyoming's small businesses. While 97.8% of larger firms with over 50 employees offer ESHI plans, only 26.5% of small employers in Wyoming provide health insurance. Taxing health care could widen this gap, placing small businesses at an unfair disadvantage with increased costs. It may also drive away talented employees if employers are forced to offer reduced benefits.
This isn't just about dollars and cents—it's about the health and stability of our families. Rising out-of-pocket costs and limited access to healthcare would hit our middle-class families the hardest, making it more difficult to make ends meet. This proposal to tax ESHI premiums is coming at a time when Wyoming's inflation has soared by 21.9% since January 2021, surpassing the national average by 1.3%, according to the US Congress Joint Economic Committee.
Compared to a year ago, households in our state are spending on average $107 more per month just to maintain their same standard of living. Cumulatively, this translates to Wyoming residents paying $1,154 more per month for the same essential goods and services they purchased in January 2021. In the last four years, Wyoming families have had to spend an eye-popping $36,443 more, all so that Congress can raise the debt ceiling and spend money on important things—you know, like the borders of Ukraine, giving free housing and medical care to illegal immigrants, and funding gain-of-function research for the benefit of big pharma.
Meanwhile, Wyoming ranked 49th in the nation for healthcare access and affordability last year. This is not acceptable. This is not America first. With 1 in 10 Wyoming children uninsured—twice the national average—and a quarter of adults lacking consistent healthcare access, our state urgently needs strong advocacy and leadership from our representatives in Congress- not new taxes.
Addressing these pressing issues is critical given Wyoming's unique challenges. Its small population and vast geography already contribute to higher healthcare costs and fewer options for patients. With rural and frontier areas often underserved by healthcare providers and facilities, any additional financial burden on the healthcare system could lead to further closures of local clinics and hospitals. This would leave many communities without nearby healthcare options, forcing residents to travel long distances or forego care altogether.
Washington's detached policymaking fails to address these pressing issues, leaving Wyomingites struggling with inadequate healthcare access and mounting financial burdens. This disconnect is glaringly evident in proposed policies that seek short-term federal revenue boosts without adequately considering the repercussions on small businesses and working families—the backbone of Wyoming’s economic vitality.
Affordable healthcare isn't a luxury—it's a fundamental need that ensures our families can thrive and our businesses can grow.
Our elected officials must reject policies that jeopardize our health and our livelihoods. Instead, they should look to champion measures that bolster small businesses, reduce healthcare costs, and create economic opportunities. This approach fosters long-term economic prosperity and provides accessible pathways to quality healthcare, ensuring every Wyoming family can thrive and succeed.
Scott Clem is a former member of the Wyoming House of Representatives who now serves as the Campbell County Republican Chairman and a Campbell County Commissioner. A version of this column first appeared in the Wyoming Tribune Eagle.