REP. STARK INTRODUCES LEGISLATION TO CREATE A REFUNDABLE TAX CREDIT FOR HEALTH INSURANCE

June 16, 1999

Rep. Pete Stark (D-CA), in testimony before the Ways and Means Committee today, announced the introduction of HR 2185, The Health Insurance for Americans Act of 1999. The legislation is the boldest health insurance tax credit legislation introduced in the House of Representatives to date and would provide the real means for currently uninsured Americans to purchase affordable, comprehensive health insurance.

Rep. Stark stated, "Tax credits for health insurance have become the Republicans favorite rhetorical device on health care. I am here today to tell them to put their money where their mouths are."

"If tax credits are the choice of the day for expanding health insurance coverage, I am willing to play their game, but they are going to have to make the credits real. In order to do so, you have to commit to tax credits of a significant dollar amount and you have to reform the insurance market. Giving people tax credits to play in the crazy, unfair, over-priced and under-regulated private health insurance market is nothing more than a waste of money. It is the least efficient way to spend limited government resources," continued Rep. Stark.

"That is why the bill I have introduced takes a two-pronged approach to the issue. It dedicates funds for refundable tax credits (up to $3600 for a family) and it creates a new federal pool (like the Federal Employees Health Benefits Program) where comprehensive insurance policies would be available at group rates without underwriting," said Rep. Stark.

"The HIAA Act is a template for making tax credits work as the means of providing health insurance for everyone. It's not my first choice for the way to reach universal coverage, but since tax credits are more in vogue today than some other options, I am more than willing to adapt," stated Rep. Stark.

Rep. Stark concluded, "The important issue is insuring all Americans ­ not the model by which we get there. However, if the model is flawed, we could do more peril than good. That is why I offer the HIAA bill to my colleagues today."

CONTACT: Debbie Curtis (202) 225-5065


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