HIAA Applauds House Passage Of Tax Relief Bill

Jul 23, 1999

FOR IMMEDIATE RELEASE

July 23, 1999

CONTACT: Carrie B. Tydings

(202) 824-1786

e-mail: ctydings@hiaa.org

The following statement was released today by Chip Kahn, President of the Health Insurance Association of America (HIAA):

The Health Insurance Association of America applauds the House of Representatives for passing a proposal that would provide tax relief to millions of Americans when they purchase private health and long-term care insurance.

The "Financial Freedom Act" – sponsored by House Ways and Means Committee Chairman Bill Archer (R-TX) – would provide an "above the line" tax deduction for the cost of private health insurance and long-term care insurance premiums, and would allow long-term care insurance premiums to be paid for by employers’ cafeteria plans. HIAA is particularly pleased with the package because tax relief for insurance premiums is a key component of HIAA’s InsureUSA plan to provide coverage to the nation’s uninsured.

We also appreciate that the House would allow all employers to offer Medical Savings Accounts (MSAs). However, we are concerned that language in the House bill could compel private Medigap beneficiaries to pay sharply higher premiums to cover the cost of a drug mandate across all private Medigap plans.

In related action, yesterday’s approval of similar tax legislation by the Senate Finance Committee also offers consumers the prospect of tax relief for health and long-term care insurance, and does not contain a costly mandated drug coverage mandate for all private Medigap plans. HIAA hopes that the full Senate will view the legislation as favorably as did the Senate Finance Committee.

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