“By focusing on prevention, the Healthy Living Tax Break will help reduce health care costs for everyone.” said Senator Debicella. “For the 94% of us who have health insurance, it will help reduce the systemic causes of increased premiums and deductibles; and for the six percent of people who do not have health insurance, cost reduction will make it cheaper to purchase private insurance or enroll in Governor Rell’s Charter Oak Plan.”

Under the Healthy Living Tax Break, individuals and families who meet preventative care guidelines established by the Department of Public Health will be able to deduct out of pocket medical expenses (including premiums, co-pays and deductibles) from their state income tax. As the Department of Public Health works to create awareness for the Healthy Living Tax Break, Senate Republicans estimate that approximately 20% of families will take advantage of it in its first year, at an estimated cost of $20 million. As awareness for the tax incentive grows, Senate Republicans estimate that between 25 % and 50% of families will take advantage of the tax deduction at a cost of $25- to $50- million per year.

“Ultimately, a successful effort to promote healthy living will benefit society far more than the initial costs of implementing it. We know, for example, that cancer and heart disease are among the leading causes of deaths in Connecticut – and far less expensive to treat if caught early. Our proposal provides people with a financial incentive to do what we all know we should be doing anyway – taking care of our health. Everyone wins,” said Senator Debicella.

The tax deduction would mean several hundred dollars a year in reduced income taxes for most families. However, the larger benefit is in lowering healthcare costs overall. “If we can catch cancer and heart disease early, it costs 80-90% less than treating late-stage diseases,” Debicella said. “Studies show that Connecticut can reduce its healthcare costs by over $2 billion if we could just catch 25% of these diseases earlier—and that is money that will be passed onto consumers in lower insurance costs.”

Senator Debicella said that qualifying for the tax break would be easy—going to the doctor for your physical, and getting all the preventative tests suitable for your age and gender (e.g., mammograms, prostate exams). Doctors would qualify families by ensuring that they had all the preventative care screenings recommended– and then sign a one-page certification form to be included when they file their state income taxes.

“In my opinion, the General Assembly needs to act this year to address the core problem of healthcare: out-of-control costs. Reducing healthcare costs will both help the middle class and help more of the uninsured afford healthcare. For over twenty years, the cost of healthcare has been rising at twice the rate of everything else. We need relief. Creating our proposed tax break for healthy living would be an important step toward providing that relief,” said Senator Debicella.