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The health care tax exemption does more than lower families’ tax burden; it also provides an incentive for businesses to offer health care benefits to their employees. Without the exemption, an estimated 11 million to 27 million people nationwide will lose their employer-sponsored health insurance. In the hardest-hit states— New York, Rhode Island, Vermont, and Connecticut—as many as 1 in every 6 currently-insured workers would lose their health care coverage.