The irony of all this is we the people pay for the health insurance through reduced paychecks (aka benefits). But we get an income tax deduction by not paying taxes on that part of our paycheck we never saw. The government is lusting for that deduction which I think amounts to more than the "losses" of the mortgage deduction, and by 2018 we'll be seeing significant changes. Obama thinks our benefit is his. By destroying the employer based system (which also gets a tax break for providing it) the federal government hopes to get huge gains. It's a 2-fer--health care costs go up because of gov't interference in the market, then we get to pay higher prices, and taxes. It's not really about what is covered and what isn't—condoms or orthotics-- but about how to mess it up so badly no one will want it and beg for something really neato like the VA offers.
http://www.kiplinger.com/article/spending/T027-C001-S001-a-tax-on-health-benefits.html
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