National Journal Magazine Archive

HEALTH - Health Insurance Plans: A Summary

	Majority Leader Dick Armey,R- Texas 
	     Proposal: The federal government would offer a refundable 
tax credit to individuals who cannot get health insurance through 
their employer. Individuals could get an annual credit of $ 1,000, 
and children could get $ 500, up to a family maximum of $ 3,000. 
The bill authorizes a study on making insurance more available 
for those with chronic health problems. The measure envisions the 
creation of so-called health marts, which small employers could 
join to give them leverage to get better insurance for employees 
at cheaper rates. 
	     Cost: Unknown 
Status: HR 2362 was introduced on June 25, with no co-sponsors. 
Rep. Jim McDermott, D-Wash. 
	     Proposal: The federal government would offer a 30 percent 
refundable tax credit to people who cannot get insurance through 
their employer. Single taxpayers earning less than $ 25,000 and 
married taxpayers earning less than $ 40,000 would be eligible, 
and the self-employed could choose between the tax credit or the 
60 percent tax deduction they now get for buying health insurance 
on their own. McDermott says he also wants states to take steps 
on their own to ensure that individuals can buy quality health 
care at reasonable prices. 
	     Cost: Unknown 
Status: HR 539 was introduced on May 14 with Rep. James E. Rogan, 
R-Calif., and 15 other co-sponsors. 
Rep. Nancy L. Johnson, R-Conn. 
	     Proposal: The bill would combine tax credits and tax 
deductions for those who can't get health insurance through 
employers. Individuals with incomes below $ 40,000 could get up 
to $1,200 in tax credits annually, and families with incomes under 
$70,000 could get credits up to $ 2,400. Individuals whose incomes 
are too high to get the credit, or who are paying at least half 
the cost of insurance they get through their employer or 
association, could get a 50 percent tax deduction. 
	     Cost: Unknown 
	     Status: Johnson introduced HR 2020 on June 7, with 27 co- 
sponsors. 
	     Health Insurance Association of America 
Proposal: Individuals with incomes under the federal poverty 
level who aren't eligible for Medicaid could enter federally 
funded, but state-run, health care programs, such as Medicaid. 
Individuals with incomes between 100 and 200 percent of the 
federal poverty level would get vouchers from the federal 
government. The vouchers would be equal to 75 percent of the 
average premium for the Federal Employee Health Benefits Program. 
For individuals, the average premium in that program is currently 
$2,600 a year. 
	     Cost: The HIAA estimates the proposal could cost the 
government a net of $ 50 billion a year. 
	     Status: The HIAA released its proposal on May 19. 
American Medical Association 
	     Proposal: The federal government would offer a refundable 
tax credit to individuals who either buy their own health 
insurance or receive it through an employer. Low-income people 
would receive the aid in the form of a voucher. The AMA proposes 
the creation of purchasing cooperatives to help spread the cost 
of insurance between healthy and unhealthy people. 
	     Cost: Unknown 
	     Status: The AMA issued its proposal in late 1998. 
Rep. Bill Archer, R-Texas 
	     Proposal: Archer wants to allow taxpayers to fully deduct 
the amount they pay for health insurance, if they cannot get 
insurance through an employer. Taxpayers could also deduct the 
cost of long term care insurance policies. His bill would expand 
medical savings accounts by allowing all employers to offer them. 
The minimum deductibles for MSAs would be set at $ 1,000 for 
individuals and $ 2,000 for families. Archer estimates the 
proposal might help between 6 and 8 million uninsured people. 
	     Cost: Estimated at about $ 50 billion over 10 years 
	     Staus: Archer included the proposal in his chairman's 
mark for the Ways and Means tax bill. 
Sen. William V. Roth, R-Del. 
	     Proposal: Roth's bill would allow taxpayers to fully 
deduct the amount they pay for health insurance, if they cannot 
get insurance through an employer. (That's about 12 million 
taxpayers, Roth says.) Taxpayers could also deduct the cost of 
long term care insurance policies. The bill would also lift the 
cap on the number of medical savings accounts that can be 
established. 
	     Cost: Unknown 
	     Status: S 1274 was introduced on June 24 with 17 co- 
sponsors. The bill may be included in the Finance Committee's tax 
bill. 
Blue Cross and Blue Shield Association 
	     Proposal: The federal government would provide tax 
credits to small businesses to help low-wage earners purchase 
insurance. Self-employed individuals could deduct the full cost 
of insurance premiums, not just the 60 percent they can deduct 
now. 
	     Cost: Unknown 
	     Status: The association proposed its plan in February. 
Reps. James M. Talent, R-Mo., and Calvin Dooley, D-Calif. 
	     Proposal: The bill would give small businesses and self- 
employed individuals access to group purchasing through the 
creation of association health plans, which would be subject to 
federal oversight. Similar organizations exist, but the states 
regulate them. 
	     Cost: Unknown 
	     Status: HR 2047 was approved by a House Education and the 
Workforce Subcommittee on June 18. Full committee action is pending. 
Rep. Fortney H. ''Pete'' Stark, D-Calif. 
	     Proposal: The bill would offer maximum refundable tax 
credits of $ 1,200 per adult, $ 600 per child, and $ 3,600 per 
family for anyone not participating in an employer-sponsored 
health plan. Credits could be used to buy private policies 
through an office of the Health and Human Services Department. 
Health plans that participate in the Federal Employee Health 
Benefits Program would also have to offer coverage for the 
uninsured, and they would have to accept all applicants, 
regardless of their medical condition. 
	     Cost: Unknown 
	     Status: HR 2185 was introduced on June 15 with no co- 
sponsors.