For Immediate Release April 28, 2005
Contact: Laura Clay Trueman
(202) 626-8573 ltrueman@jeffersongr.com

Uninsured Americans Targeted for Assistance

The Coalition for Affordable Health Coverage congratulates Senator Rick Santorum (R-PA) and Representatives Sam Johnson (R-TX), Eric Cantor (R-VA), J.D. Hayworth (R-AZ), and Paul Ryan (R-WI), who introduced the “Health Coverage for the Uninsured Act,” legislation to designed to make health insurance more affordable.

“This bill builds on the success Health Savings Accounts are having in helping people – particularly uninsured people – afford health insurance. Already, the most recent data reported by Assurant Health indicates that 40% of those purchasing HSAs were previously uninsured. With this legislation, even more of the uninsured with modest incomes would be able to afford policies. Right now, many simply cannot afford to pay for health insurance on their own,” said Laura Clay Trueman, Executive Director of the Coalition for Affordable Health Coverage.

Under the bill, individuals with incomes under $30,000 and families with incomes under $60,000 would be eligible to receive an advanceable, refundable tax credit of up to $1000 per adult and $500 per dependent child. The maximum credit for a family would be $3000.

Ronnie Miles of Baltimore, Maryland, is an example of what happens when Congress creates affordable and attractive options for the uninsured. Mr. Miles was laid off his job in 2002 and, consequently, lost his health insurance. To continue his company coverage through COBRA, he would have had to pay $350 per month for the premium. As a result, Miles went without coverage for two years. Six months ago, he learned about Health Savings Accounts through eHealthInsurance.com. Instead of paying $350 a month, Ronnie is now covered with an HSA-qualified plan for $104 per month; and he puts away $50 each month into his HSA account.

“I took a risk that no one should take, being without health insurance,” says Miles. “Now, I have my own management consulting business and health insurance has become affordable because of HSAs. It’s a big enough risk to start your own business; I don’t think people like me who are self employed or own small businesses should also have to take the risk of going without health insurance.”

“Ronnie Miles illustrates what we already know: micro-businesses and their employees need affordable alternatives to the current health insurance system,” says NASE President, Robert Hughes, a member of the CAHC. “More than half the uninsured are either self-employed or work in businesses with fewer than 25 employees. Making tax credits available to them will definitely make a difference in their being able to afford health insurance.”

In addition to the uninsured tax credit, the bill also contains provisions regarding Health Savings Accounts (HSAs). All Americans could deduct the premium cost of the high-deductible health plans associated with HSAs, regardless of whether an individual itemizes deductions on his or her return. Small businesses would also be eligible to receive a tax credit for contributions made into their employees’ HSAs: $200 for an individual, and up to $500 for a family.

The Coalition for Affordable Health Coverage is a diverse group of businesses, associations, and consumers who advocate market-based reforms to reduce the uninsured. Members include: AdvaMed, Aetna, America’s Health Insurance Plans, American College of Cardiology, ALEC, American Medical Association, American Osteopathic Association, Assurant Health, Bayer Corporation, Federation of American Hospitals, FMC Corporation, GlaxoSmithKline, Healthcare Leadership Council, National Association of Health Underwriters, National Association of Manufacturers, National Association for the Self-Employed, PhRMA, UnitedHealthGroup, U.S. Chamber of Commerce, Women Impacting Public Policy, Wyeth Pharmaceuticals For more information about the Coalition, visit www.cahc.net.