Happy Wednesday! In this week's Big I Buzz we look at the election's potential impact on the fate of a tax break for small businesses, and where Wisconsin ranks among states with the highest hospital prices in the U.S.

Election May Determine Fate of Tax Break Important to Small Brokerages

The 2024 election could decide the future of a tax break for small businesses, including many insurance brokerages. The 2017 Tax Cut and Jobs Act introduced a 20% tax deduction for business owners who pay taxes through their personal returns. This provision, along with other parts of the law like lower personal rates and estate-tax limits, will expire at the end of 2025, leaving Congress to address them next year. Renewing these tax breaks could cost the government $4.6 trillion, according to the Congressional Budget Office, and this issue may become a major debate of the year. The outcome will depend on who wins the White House and controls the House and Senate after the November elections. Read more here.

Wisconsin Ranks No. 5 for States with Highest Hospital Prices

The RAND Corp.’s updated Hospital Price Transparency Study ranked Wisconsin fifth for highest hospital prices, using Medicare reimbursement as a benchmark. In 2022, Wisconsinites paid an average of 318% of what Medicare would have paid for hospital services, compared to a national average of 257%. The study found significant price disparities: nearby states like Michigan, Iowa, Indiana, and Minnesota had relative prices of 192%, 185%, 297%, and 238% of Medicare, respectively. Price variations between providers are due to a lack of transparent pricing and market consolidation. Additionally, costs vary by care site, with telehealth and office visits being the most cost-effective, followed by urgent care, and emergency care and hospital services being the most expensive. Facility inpatient prices averaged 242% of Medicare, outpatient prices 288%, and outpatient professional fees 190%. Read more here.

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