Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, September 7, 1993                   TAG: 9309070004
SECTION: NATL/INTL                    PAGE: A-8   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Short

HEALTH PLANS TO REMAIN TAX-FREE

The Clinton administration sought to allay concerns about the new limit on tax breaks for employer-provided health benefits that will be part of its forthcoming reform package.

Senior administration officials said Saturday they were expecting to raise several billion dollars a year from the so-called tax cap, but most people would not pay any taxes on their health benefits.

Kevin Anderson, a spokesman for Clinton's health reform team, said Monday that employers will be able to secure permanent tax exemptions for health benefits their workers currently enjoy.

Clinton has promised to guarantee an extensive benefit package for all Americans, primarily by requiring all employers to help pay for the insurance.

The so-called tax cap would come into play where a worker gets health benefits over and above the standard benefit package.

Anderson said there will be special provisions to cushion union workers and others from the tax cap.

Workers' current health benefits "will never, ever become taxable income to the employee," said Anderson.

For example, a worker with full dental coverage would not be taxed on that benefit, even though the Clinton plan in its early years would cover dental services only for children. Clinton is aiming to provide dental coverage for adults in 2000 and beyond.