FOR IMMEDIATE RELEASE January 27, 2000

SENATOR BREAUX UNVEILS BIPARTISAN HEALTH CARE TAX CREDIT FOR UNINSURED A major bipartisan plan to help provide health insurance to America's uninsured was unveiled today by Sens. John Breaux (D-La.), Bill Frist (R-Tenn.) and Jim Jeffords (R-Vt.). Under the Health Coverage Access Relief and Equity (C.A.R.E.) Act, an estimated 27 million Americans nationwide would be eligible for a health insurance tax credit. Nearly 21.5 million of these Americans are currently uninsured. This bipartisan congressional group has been working since August to develop this final tax credit proposal, consulting with policy and tax experts, as well as consumers, employers, providers and insurance organizations. They are developing additional provisions focused on improving access to health care services and safety net providers which will be unveiled later this year. "In a country as wealthy as ours, enjoying unprecedented economic prosperity, having 44 million uninsured Americans is absolutely unacceptable," said Sen. Breaux. "Our health insurance tax credit proposal is an important first step toward solving the problem of the nation's uninsured and removing some of the inequities of the current tax structure." In Louisiana alone there are an estimated 800,000 people without health insurance. Nationwide, nearly 80 percent of the uninsured are from working families. Sen. Breaux stressed that this is a very important part of addressing the inequities in the current tax code. Under today's tax system, employers can deduct the cost of providing health insurance to their employees and their employees can exclude the cost of this coverage from their income. "It is not fair that many low-income Americans get no help buying their own health insurance while the federal government spends $76 billion a year to subsidize employers who provide health coverage to their workers, most of whom are middle and high- income," said Sen. Breaux. This proposal would increase the number of Americans who have health insurance coverage by filling critical gaps in the current system and create a system of health care financing and delivery that complements the employment-based system. It also makes a more equitable tax system in which government subsidies for the purchase of health insurance are available to more Americans, and not just to workers who have employer-subsidized health benefits. Sens. Breaux and Jeffords put forth health tax credit proposals as part of tax reform packages last year and bills have also been introduced in the House by members across the political spectrum.