DeMint, Kyl Introduce Health Care Equity Act

Press Release

U.S. Senators Jim DeMint (R-S.C.) and Jon Kyl (R-Ariz.) today introduced the "Health Care Equity Act," which allows Americans who purchase health insurance to deduct their health insurance premiums from their income taxes. The plan would also allow Americans with Health Savings Accounts (HSAs) to make tax free withdrawals to pay plan premiums.

"The Health Care Equity Act takes an important first step in improving access to affordable health coverage," said Senator Kyl. "By eliminating the bias in the tax code, every American who purchases health insurance would receive an income tax deduction, giving individuals better choices and more control over their health care. This is particularly important for younger Americans, small-business employees, and part-time and low-wage workers, who struggle with rising health care costs."

"We can make health insurance affordable for millions of Americans by ending unfairness in the tax code," said Senator DeMint. "By leveling the playing field, Americans without health insurance can purchase quality coverage and take it from job to job. Too many hardworking Americans are penalized today simply because they work for a business that doesn't offer health coverage. This bill will help fix that and begin to reduce the number of uninsured in our country."

Under current law, employees pay no income taxes on employer contributions for health insurance. Employees may also exclude their own portion of health insurance premiums from income taxes if they receive employer-sponsored coverage. However, individuals without employer-sponsored coverage can only deduct the cost of their health insurance if it exceeds 7.5 percent of their adjusted gross income.

The Health Care Equity Act provides individuals purchasing health insurance on their own with the same tax benefit as those who receive employer-sponsored coverage. Furthermore, individuals will be able to keep their coverage between jobs without having to change health plans and doctors.

Senators Richard Burr (R-N.C.), Saxby Chambliss (R-Ga.), Tom Coburn (R-Okla.), Bob Corker (Tenn.), Larry Craig (R-Idaho), Lindsey Graham (R-S.C.), Kay Bailey Hutchison (R-Texas), Johnny Isakson (R-Ga.), James Inhofe (R-Okla.), Mel Martinez (R-Fla.), John Thune (R-S.D.), and David Vitter (R-La.) are also co-sponsors.