One approach to reforming the individual, or nongroup, insurance market would eliminate the tax break that workers get for health coverage they receive on the job, and instead give people a tax credit they could use to buy insurance anywhere in the country. Advocates say insurers would compete for business, offering a variety of plans that would meet people's needs and bring down costs. Health Savings Accounts, linked to high-deductible insurance policies, are prominent in this model.

Critics say this approach would mean insurance would likely be more affordable for relatively young and healthy people, but very expensive (if available at all) for people who are older or have pre-existing health conditions. Some versions of this plan call for a government-subsidized high risk pool for the "uninsurable."¹

Reference:
1.  Furman, Jason (2008). "Health Reform Through Tax Reform: A Primer."
Health Affairs. 27.3.622. (www.healthaffairs.org).