Tax Bill Provides Relief To Consumers Needing
Health And Long-Term Care Insurance Coverage
Aug 05, 1999
FOR IMMEDIATE RELEASE
August 5, 1999
CONTACT: Richard Coorsh
(202) 824-1787
rcoorsh@hiaa.org
The following statement was released today by Chip Kahn,
President of the Health Insurance Association of America (HIAA):
The tax bill reported out of the House-Senate conference
committee offers consumers much-need and long overdue tax relief
that would help millions better afford the cost of private health
and long-term care insurance. This tax relief is vitally important
because it addresses affordability – the primary obstacle
confronting most consumers seeking health and long-term care
coverage. Also, we are pleased that there appears to be an emerging
bipartisan Congressional consensus around the wisdom of using the
tax code to help provide coverage to uninsured Americans.
However, the tax bill contains two ill-conceived provisions that
may allow Medicare beneficiaries to qualify for a tax deduction for
the cost of drugs. The first provision would allow a deduction for
the cost of certain drugs that once were available only by
prescription, and that over the last two years have become available
over the counter. It is unrealistic to assume that all consumers
know which drugs fall into this category. Furthermore, even if
consumers did know, it is unlikely that they would have saved their
receipts for over-the-counter medications. At best, this provision
is a political placebo.
The second provision would provide Medicare beneficiaries with a
conditional deduction for insurance premiums for prescription drug
coverage. However, one of the conditions could require a mandate
that all private Medicare Supplemental ("Medigap") plans include
prescription drug coverage. HIAA steadfastly opposes this provision
because of its potential to saddle seniors with Medigap with a
significant premium increase. This in turn would force many of them
to drop their Medigap coverage, upon which they rely to pay for all
of the expenses not covered by Medicare.
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