Statements on Introduced Bills and Joint Resolutions

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

By Mr. BURR:

S. 2379. A bill to amend the Internal Revenue Code of 1986 to allow a deduction for health and long-term care insurance costs of individual not participating in employer-subsidized health plans; to the Committee on Finance.

Mr. BURR. Mr. President, I rise today to introduce legislation that would provide an above-the-line tax deduction for individuals who purchase their own health insurance and are not receiving it through their employer. An above-the-line tax deduction would allow a taxpayer to take the deduction even if they don't itemize their taxes. Current law allows those individuals who are self-employed and purchase health insurance to take an above-the-line tax deduction. My legislation would make the tax code fairer by allowing those people who are not self-employed to take the same deduction.

An estimated 17.4 million Americans in 2005 were covered by individually purchased health insurance policies. Some of these people are self-employed and can currently take this deduction. However, based upon these statistics, I estimate that up to 2 million families who have purchased health insurance do not have access to this deduction. My legislation seeks to correct that. Additionally, the legislation will make it cheaper for uninsured people to purchase their own health insurance policies. Health care costs in general are expected to rise 7.2 percent per year for the next ten years, so it is important for Congress to pursue steps to attempt to rein in this inflation and also to try to make health care and health insurance more accessible and affordable. This legislation is a part of those efforts.

Another important aspect of the legislation is that it would also allow individuals to take an above-the-line deduction for the purchase of long-term-care insurance. Most employers do not offer any subsidized long-term-care insurance to their employees, so those who need this protection often have to purchase it in the individual market. It is very important for Americans to purchase this insurance, since many people assume that Medicare covers long-term-care costs when people turn age 65. However, this is not true. Often, seniors will find themselves on Medicaid, the low-income federal health care program, when they have long stays in nursing homes that they cannot pay for. Long-term-care insurance is a far better alternative to having seniors go onto Medicaid. It is important for Congress to incentivize people to purchase this insurance, and my legislation is a step in the right direction.

I want to urge my colleagues to look at this legislation. It is short and to the point, but helping people to have private health insurance and long-term-care insurance is an important part of improving our health care system.

http://thomas.loc.gov/