Mr. Speaker, I yield myself 3 minutes. (Mr. STARK asked and was given permission to revise and extend his remarks.) Mr. Speaker, I will start with an apology to all my Republican colleagues. For, oh, at least the 30 years or so I have been…
Mr. Speaker, I yield myself 3 minutes.
(Mr. STARK asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I will start with an apology to all my Republican colleagues. For, oh, at least the 30 years or so I have been here, I have been accusing the Republicans of not being inclusive, just dealing with the rich and forgetting about the minorities and the working people in this country. With this bill they have become broadly inclusive. Later on tonight, they are going to take the first step in destroying health care for seniors, and then, because they are being so inclusive with this bill, they are going to screw everybody. They are going to destroy health care for the employees who get their health insurance from employers.
As the distinguished ranking member of our committee pointed out, $100 billion was added to this in the middle of the night, and the bill will be funded by borrowing, by increasing the national debt and worsening deficits. And all it really does, if you cut through all the Mickey Mouse that they have talked about, high-deductible insurance, is that it creates some new tax-exempt savings accounts. Tax shelters for the wealthy and the healthy. And it advances the objective of undercutting employer-provided health coverage.
It is no secret that the distinguished chairman of the Committee on Ways and Means has expressed his desire to dismantle the employment- linked health insurance system, and he has noted that he believes it encourages overutilization of health care because individuals are shielded from knowing the true cost.
Now, the argument that the bill will assist the uninsured is not true. Most of the uninsured have incomes too low to be eligible for any tax benefits contained in H.R. 2596. And as was stated earlier, few, if any, have the $4,000 a year in additional savings required to utilize the benefits contained. There is nothing in this bill that requires the employers to give the employees any money to make up for that gap that will be created by the higher deductibles. It merely gives them the opportunity, if they have any money, to add to savings accounts.
Not surprisingly, the same 6 million families who were deliberately excluded by the Republicans from the recent tax bill for child tax credit are the same families that they are excluding from benefiting in this bill. So for families with insurance, it provides tax benefits only if the insurance requires them to pay the first thousand dollars; and employers will be encouraged by this nonsense to increase health insurance deductibles, which lowers their costs and lowers the benefits for most of their employees' health insurance.
Mr. Speaker, I yield 3 minutes to the gentleman from Michigan (Mr. Levin), a member of the Committee on Ways and Means who understands that with this $174 billion that we are wasting in this bill, we could help States maintain Medicaid coverage as they weather their fiscal crisis.
Mr. Speaker, I yield 3 minutes to the gentleman from Washington (Mr. McDermott) who realizes that with this $176 billion we could insure every one of the 9 million uninsured children in this country.
(Mr. McDERMOT asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I yield myself 30 seconds. I have a couple of letters, one from the AFL-CIO which suggests that this legislation would establish an enormous tax shelter for wealthy individuals and at the same time undermine employer-based health coverage and shift costs onto workers. I have a letter from Families USA which, among other things, says that this bill also threatens the employer-provided health insurance system particularly among smaller employers who will be able to take deductions in the top brackets and who will then no longer be interested in providing coverage for their employees.
Mr. Speaker, I include both letters for the Record.
American Federation of Labor and Congress of Industrial
Organizations,
Washington, DC, June 26, 2003.
Dear Representative: The AFL-CIO opposes H.R. 2351, the
Health Savings Account Availability Act. This legislation
would establish an enormous tax shelter for wealthy
individuals and at the same time undermine employer-based
health coverage and shift more cost onto workers. Despite
proponents' claims, this bill would fail to expand coverage
to the uninsured and would be especially harmful to those
low-income, older and sicker workers who now have
comprehensive coverage.
Under H.R. 2351, employers could offer Health Savings
Accounts as long as they are provided in conjunction with
high-deductible health insurance policies, defined as at
least $500 for an individual policy and $1,000 for a family
plan. This will encourage employers to abandon more generous
coverage and offer instead less comprehensive policies that
shift significant costs onto workers. The Joint Committee on
Taxation has estimated that 30 million such accounts would be
established by 2013 and the majority of employers would
modify their health plans to meet the high-deductible
guidelines of the legislation.
In addition, this shift in coverage would harm most those
workers who need health care. Low-income workers who are the
intended beneficiaries of these plans' preferred tax
treatment are not likely to get back enough in taxes to
offset the greater out-of-pocket costs they are likely to
incur with these high-deductible plans.
Furthermore, those workers and other insured individuals
who have traditional, more comprehensive coverage will see
their premiums rise. Younger, healthier workers will likely
choose the less-comprehensive coverage, leaving older and
sicker workers and those who earn too little to pay taxes in
traditional coverage. As a result, costs for this coverage
will rise, leaving workers with no choice but to enroll in
the high-deductible coverage this bill seeks to promote.
This legislation was slipped through the Ways and Means
committee last week, and made worst late last night in the
Rules Committee. Among the changes made in Rules, the income
threshold has been raised to $175,000 for joint filers. The
cost of the revised bill is estimated to be $174 over ten
years--more than twice the estimated cost of the bill that
passed Ways and Means last week--and makes clear that this
legislation is first and foremost another tax shelter, not a
bill to cover the uninsured.
H.R. 2351 was raised just last week with little notice and
certainly without any hearings, despite the bill's far-
reaching implications and significant cost. And now the House
leadership has called for it to be joined with the Medicare
prescription drug legislation before the House. I urge you to
vote against H.R. 2351.
Sincerely,
William Samuel,
Director, Department of Legislation.
Mr. Speaker, I yield 3 minutes to the distinguished gentleman from Wisconsin (Mr. Kleczka).
Mr. Speaker, I yield 4 minutes to the distinguished gentleman from Texas (Mr. Doggett), a
member of the Committee on Ways and Means.
Mr. Speaker, I yield 2 minutes to the distinguished gentleman from New Jersey (Mr. Pallone), who understands that we could cover the parents of low-income children who are eligible for Medicaid and CHIP with the same amount of money.
Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from Illinois (Mr. Emanuel).
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield 2 minutes to the gentleman from Washington (Mr. Inslee).
(Mr. INSLEE asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I am delighted to yield the balance of our time to the distinguished gentleman from California (Mr. George Miller), the ranking member of the Committee on Education and the Workforce.
Mr. Speaker, I object to the vote on the ground that a quorum is not present and make the point of order that a quorum is not present.