Mr. President, I rise to introduce legislation to help individuals, small businesses, and the uninsured afford health insurance coverage. Today, 60 percent of Americans obtain health insurance…
Mr. President, I rise to introduce legislation to help individuals, small businesses, and the uninsured afford health insurance coverage. Today, 60 percent of Americans obtain health insurance coverage through their employers. The system of employer- sponsored health insurance has long provided coverage to the vast majority of America's workers and their families. However, a significant number of Americans, particularly those who work for small businesses, lack access to coverage through the employment-based system.
Employees of small businesses often go uninsured or purchase health insurance coverage on their own because continuing double-digit cost increases and burdensome state regulations are making it difficult for small employers to offer health insurance coverage.
Health insurance is valuable for a number of reasons. People who are insured are protected against uncertain and high medical expenses and are more likely to receive needed and appropriate health care. Having health insurance is also associated with improved health outcomes and lower mortality, so employees with health insurance are more likely to be productive workers.
Health savings accounts have become an important option for individuals and small businesses who have struggled to afford health insurance coverage.
The Affordability in the Individual Market Act, also known as the AIM Act, builds on the foundation of a previously passed law that established Health Savings Accounts. These accounts allow individuals with high-deductible health insurance to set aside money, tax free, up to a set limit, to use for routine medical expenses.
You can make a contribution to Health Savings Accounts or your employer can make a contribution to the account. If you don't use all the money in a year you can roll it over, tax free, to meet future expenses.
Today, individuals trying to build up a nest egg for their retiree health expenses through a Health Savings Account are not able to use these funds to purchase their health insurance, except under limited circumstances.
The AIM Act would expand the definition of what is considered a ``qualified medical expense'' under the Internal Revenue Code to allow individuals and families who purchase high-deductible health plans on their own to use their Health Savings Accounts to pay plan premiums. It seems completely reasonable to allow these individuals to pay high- deductible health plan premiums with Health Savings Account dollars.
I ask my colleagues to consider cosponsoring this responsible, common-sense legislation.
