Study: O-Care executive compensation provision raked in millions

An executive compensation reform provision in ObamaCare has generated millions of dollars in savings since last year, according to a left-leaning think tank.

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The Institute for Policy Studies released a report Wednesday that found limiting tax deductions for executive pay at health insurance companies resulted in $72 million to U.S. coffers from the top 10 publicly held firms alone.

“This $72 million in savings from limiting pay-related deductions for just 57 executives is the equivalent of the cost of dental insurance for 262,000 Americans or the average annual health insurance plan deductible for 28,000 people,” the authors of the report wrote.

“If the Obamacare executive pay tax provision applied to all major U.S. corporations, not just to health insurers, U.S. taxpayers would save $50 billion over the next 10 years — and deliver a major blow against CEO compensation business as usual,” they added.

Tax deductions for executive pay at health insurance firms is limited above $500,000 under the Affordable Care Act.

Researchers note that while executive pay levels did not decline in 2013, the share of executive compensation that the top 10 health insurers could deduct fell from 96 percent in 2012 to 27 percent in 2013.

They calculate those companies owed, on average, $1.3 million more in taxes per executive.