STARK INTRODUCES THE MEDICARE EARLY ACCESS AND TAX CREDIT ACT

Legislation Improves upon the existing Medicare Early Access Act by adding a new 25% federal tax credit to the program to make it more affordable for people age 55 and over to obtain health insurance coverage

July 21, 2000

Today, Reps. Stark, Brown, Gephardt, Rangel, Dingell, Weygand and more than 45 of their colleagues announced the introduction of the Medicare Early Access and Tax Credit Act, with companion legislation introduced in the Senate by Senator Rockefeller. If enacted, the legislation would reduce the number of uninsured Americans by more than 500,000.

The bill provides new insurance coverage options through a Medicare buy-in for people aged 55 through 64 or through a special COBRA continuation program for workers aged 55 through 64 whose employers’ reneged on the promise of retiree health coverage. The bill also provides for a new 25% federal tax credit for individuals taking advantage of these new coverage options. The tax credit is designed to increase the affordability of this new option.

"We join together today to introduce an improved version of the Medicare Early Access Act in order to make sure that more people age 55 through 64 are able to take advantage of this important addition to the marketplace. People age 55 and over are very vulnerable to loss of health insurance. In fact, a new survey released today by the Commonwealth Fund finds that one in five people from age 50-64 reported a time of being without health insurance since turning age 50. Clearly, we need to take real steps to address the concerns of this population," said Rep. Stark.

The Commonwealth survey also found that, "When asked what source they would trust more to provide health insurance for adults ages 50 to 64, Medicare outranked employer-sponsored coverage and direct purchase of private individual health insurance... Half of uninsured adults ages 50-64 said they would trust Medicare the most as a source of coverage."

Senator Rockefeller said, "The problem of the uninsured continues to plague our nation, and it is particularly severe for older Americans who are facing the loss of health coverage but who are not yet eligible for Medicare. Our legislation would create the opportunity for people between 55 and 64 to access Medicare, which is really the only affordable option for this group. By a tax credit, we're also making this option available to a broader range of people."

"The Medicare Early Access and Tax Credit Act is not the full solution to solving America’s health insurance coverage problems. But, it is a simple and obvious step to take to open new doors to a vulnerable segment of our population who are lacking affordable coverage elsewhere – and who would welcome the opportunity to buy into Medicare at an earlier age. I urge my colleagues to join with us and take this small step to make health insurance a reality for people who are not yet eligible for the safety net of Medicare," concluded Rep. Stark.

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