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Senate adopts substitute to allow limited income tax deduction for health‑insurance premiums
Summary
The Senate passed a substitute version of SB 103 to permit income tax deductions for health‑insurance premiums for lower‑income families, narrowing the fiscal impact and targeting those with family incomes under $25,000 (phased out toward $35,000). Debate highlighted a fiscal note estimated at $6 million and long‑term access benefits.
The Senate on Feb. 11 adopted a substitute for SB 103, a bill that creates an income tax deduction for health‑insurance premiums paid by taxpayers who currently lack employer coverage. Senator Robert Steiner presented the policy rationale, citing Utah Department of Health estimates that roughly 92,000 Utahns were uninsured and that many cited affordability as the barrier.
To reduce the bill’s fiscal impact, the sponsor offered a substitute making the deduction available to families with incomes up to $25,000, phasing it out by $35,000. Senators acknowledged a legislative fiscal note that placed a potential short‑term cost at about $6,000,000 to the Uniform School Fund and implementation costs for the Tax Commission, but several members argued broader coverage could reduce uncompensated care and long‑term health costs.
The Senate adopted the substitute and passed the bill on roll call (21 ayes, 1 nay, 7 absent). Sponsors and supporters said the measure would make insurance more affordable for low‑income families and help increase enrollment in private coverage.
What happens next: SB 103 was placed on the third‑reading calendar. If enacted, implementation will require coordination with the Tax Commission for rules and any appropriation needed to implement changes in the tax return process.
