Affordable Health Care for Americans Act of 2007

Madam Speaker, I rise today to discuss three bills I recently introduced that are designed to reduce the number of Americans who do not have access to health insurance. These three bills are designated H.R. 3515, the Health Insurance Tax Relief Act of 2007; H.R. 3516, the Affordable Health Care for Americans Act of 2007; and H.R. 3517, the Long-Term Care Tax Reduction Act of 2007.

In 2006, approximately 47 million Americans, or 15.8 percent of the population, did not have health insurance coverage for the entire year. When people lack health insurance, they often find themselves lacking real access to health care, thus unnecessarily incur illnesses, emotional and physical pain, and costs. This is particularly the case with preventable or chronic conditions. In addition, when patients cannot pay for health services, the facilities that provide those services suffer financial losses, which have been estimated to be as high as $41 billion annually. As a result, some health care providers reduce or stop offering services while others may raise rates, thus reducing everyone's access to health care.

The average annual premium for self-only coverage in 2007 is $4,479 with the average premium for a family of four at $12,106. These premiums were 7.7 percent over the cost of the previous year's premiums and grew at a rate in excess of both wage gains and the growth in prices for goods and services. Nearly 60 percent of Americans receive health insurance through their employment, primarily because of the advantages available to employers and employees under our Nation's tax code.

To reduce the number of uninsured Americans, we need to help open doors for those who do not receive health insurance through their workplace and do not qualify for public programs. H.R. 3515, the Health Insurance Tax Relief Act of 2007, and H.R. 3516, the Affordable Health Care for Americans Act are both designed to provide this assistance. Specifically, H.R. 3515 would allow eligible individuals a refundable credit against income tax for the purchase of private health insurance and H.R. 3516 would permit individuals to take an above-the-line tax deduction, whether or not they itemize, for all health insurance premiums paid during a tax year.

With regard to long-term care, this challenge currently constitutes a significant component of health care spending in the United States. In fact, of the $1.56 trillion spent on personal health care services in 2004, over $194 million or 12.5 percent was spent on long-term care services. Of that amount, nearly $37 billion was paid out-of-pocket by consumers.

There is no question that long-term care insurance is increasingly becoming a necessity as Americans are living longer. However, the expense of this coverage is a major obstacle to its purchase. Thus, I have introduced H.R. 3517, the Long-Term Care Tax Reduction Act of 2007, which would allow individuals to use their IRAs, as well as 401(k) and 403(b) plans, to purchase qualified long-term insurance using pre-tax dollars without penalty. If enacted, this measure may save the government money in the long run by reducing the more than $133 billion Medicaid and Medicare spend annually, while allowing Americans to preserve more of their retirement savings and their sense of independence.

Accordingly, I ask my colleagues to carefully consider these points as they review these three bills. In addition, I ask them to work with me to enact these measures during the 110th Congress.