ALEXANDRIA, VA – This week has been designated as “Cover the Uninsured Week,” an effort to get elected officials, the media and the public to focus on issues facing America’s uninsured. Therefore, the Council for Affordable Health Insurance (CAHI) will offer a solution a day from one of its experts, who will discuss a topic which directly affects the uninsured.

Today’s issue: Tax Fairness by CAHI Research and Policy Director Victoria Craig Bunce.

What can we do to keep health insurance accessible and affordable? Provide tax equity for all Americans. The current tax treatment of health benefits is the primary factor behind the growing number of uninsured, because federal law provides a tax break for those who get their health insurance through an employer and for the self-employed, but not for those whose employers do not provide coverage. Until the federal government addresses that discrimination, millions of Americans, especially low-income workers, will remain uninsured.

Fair Care. The Fair Care for the Uninsured Act, H.R. 583 and S. 1570, provides tax credits to the uninsured so they can purchase private health insurance. The legislation provides a refundable, advancable tax credit of $1,000 for an individual, $2,000 per couple, and $500 per child for a maximum of $3,000 per household for workers who do not receive subsidized health benefits through their employer.

Health Savings Accounts (HSAs). We know that uninsured Americans want Health Savings Accounts. The federal government has reported that 73 percent of those who chose Medical Savings Account plans (now HSAs) were previously uninsured. But while the HSA deposit is tax free, there is no tax break for purchasing the high-deductible health insurance that must accompany the HSA. H.R. 3901 would address that issue by allowing individuals a tax deduction for their qualifying high-deductible health insurance.

Why are so many people uninsured? Because they cannot afford insurance. What does a health insurance tax credit or deduction do? Makes health insurance more affordable. Eliminating tax discrimination in health insurance would decrease the number of uninsured, especially among low-income workers, because it would make policies more affordable. It’s time to end the current policy of tax discrimination and give the uninsured the opportunity to join the ranks of those with health insurance.

To schedule an interview with CAHI Research and Policy Director Victoria Craig Bunce, please contact Tom Gardner, director of communications, at (703) 836-6200 x386 or tgardner@cahi.org.

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