The White House Health Care Proposal

Background

President Bush unveiled during his state of the union speech on January 23rd, his new proposal on improving access to health care coverage for Americans.  With a focus on making basic, private health insurance available and affordable for more Americans, the administration hopes this plan will move the nation away from reliance on government-run health care and toward a system in which Americans have better access to basic, affordable private insurance, and increased ownership of their medical decisions. It proposes to reform the tax code by creating a standard deduction for health insurance equalizing the tax treatment for all Americans with private health care coverage.  It would also help states make affordable private health insurance available to their citizens.  Anyone buying health insurance whether through work or independently would get a standard deduction of $7,500 for individual coverage or $15,000 for family coverage. Additional included initiatives are: 1. Expanding health savings accounts; 2. Making health insurance more portable; 3. Improving information on price and quality to make health care more transparent; 4. Leveling the playing field for individuals and small business employees; 5. Passing medical liability reform; 6. Improving access to health information technology; and 7. Assisting vulnerable Americans. The Chamber has long favored the idea of parity for employer purchased and individual purchased health coverage. For years, we have supported tax-deductibility of premiums for individuals and self-employed which would provide a "level playing field" for individuals, self-employed, small businesses and large businesses. 

We are encouraged that the White House is presenting market-based solutions to the critical problems of the uninsured and the skyrocketing costs of health insurance.  The plan is expected to help make private insurance more affordable and decrease the number of the uninsured.  It is motivated by the desire to encourage greater personal responsibility and educate employees as to the value and true cost of their healthcare coverage, two concepts that the Chamber values. 

Additionally, the Chamber is pleased that the President will continue to push previous health care initiatives as well. Association Health Plans, Transparency, Medical Legal Reform and Health Information Technology continue to be priorities both for the President and the Chamber.  We continue to learn about the intricacies of this proposal and how it will affect employers and employees through indirect ways but are generally supportive of the overall proposal.

Resources

Please click on this link to access The White House's Health Care Proposal:

http://www.whitehouse.gov/news/releases/2006/01/20060131-7.html