Congressman King Introduces Legislation to Make Healthcare Affordable for Uninsured, Small Businesses

CONGRESSMAN KING INTRODUCES LEGISLATION TO MAKE HEALTHCARE AFFORDABLE FOR UNINSURED, SMALL BUSINESSES

Washington, D.C.—Rep. Steve King (R-IA) filed his second bill in the 109th Congress, showing his commitment to Iowa's small business owners. The Health Insurance Affordability Act of 2005 (H.R. 37) aims to make health insurance more affordable for middle and low-income Americans and small businesses.

King's legislation would make the premiums for the high-deductible plans that accompany Health Savings Accounts (HSAs) tax deductible. HSAs, created by the Medicare Modernization Act in the 108th Congress, allow Americans to make tax-deductible contributions to build equity and assume personal control of their health care, instead of making expensive monthly premium payments. Because premiums for the HSA high-deductible plan are considerably less expensive than traditional monthly premiums, they are an option for uninsured Americans who can't afford high premium payments.

Currently, corporations who insure employees with group health plans are allowed to deduct premium payments. King's legislation would allow small business owners, employees and individuals to deduct the HSA premium on their individual federal tax returns.

"It's time to build on the benefits of HSAs and make sure they're an affordable option for individuals and the small business owner," said King. "Small business is important to Iowa's economy, and those who take the risk to open small businesses should have the same ability as large corporations to provide benefits, attract and retain employees."

King serves on the U.S. House Small Business Committee.

http://www.house.gov/apps/list/press/ia05_king/pr_050111healthcare.html