Employer-provided health insurance has been tax deductible for decades. It is in fact what makes the left think employers should be required to have health plans. If the Democrats really wanted to help people get health care more cheaply they would have made all health care products and services tax exempt a long time ago, right down to OTC items like aspirin and band-aids.. National Health care has never been about health care as far as the Democrats are concerned. It's always been about political power and control.