[Congressional Record Volume 142, Number 46 (Friday, March 29, 1996)]
[Extensions of Remarks]
[Pages E508-E509]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       HEALTH COVERAGE AVAILABILITY AND AFFORDABILITY ACT OF 1996

                                 ______


                               speech of

                        HON. DONALD A. MANZULLO

                              of illinois

                    in the house of representatives

                        Thursday, March 28, 1996

  Mr. MANZULLO. Mr. Speaker, the legislation we are considering here 
today, H.R. 3103, will enable millions of Americans to purchase 
affordable health insurance. H.R. 3103 will extend to Americans of all 
incomes, health status, and employment status the ability to enter into 
the health care market.
  One of the biggest problems facing workers in job transition is that 
health insurance is not portable. Although the average person will 
change jobs eight times during his working life, employees are limited 
in their ability to keep their health insurance during job changes and 
periods of unemployment. One consequence is that many employees 
experience job lock, remaining in jobs just to keep their health 
insurance.
  H.R. 3103 addresses this problem in several ways. This bill allows 
individuals to purchase tax-free medical savings accounts [MSA's], 
which allow people to contribute to their own health care savings fund. 
Under MSA's, people could confine health insurance to catastrophic 
coverage, reduce their monthly insurance premiums and make deposits to 
a MSA instead. Insurance would be used to pay for expensive and 
infrequent treatments, while MSA funds would be used to pay small bills 
covering routine medical services. Moreover, these accounts would be 
portable so that if one person moves to another job or loses their job, 
health coverage would not end. MSA's would make it easier for employees 
to pay premiums during unemployment or job transition. Since workers 
are spending their own money, MSA's also would restrain health care 
spending by empowering consumers to make cost-conscious purchasing 
decisions.

  This legislation also provides portability for persons moving from 
one employer group health plan to another. Under this bill, when a 
person is covered by an employer health plan, the plan cannot refuse to 
cover a preexisting condition for more than 12 months. However, 
individuals changing jobs would receive credit for periods of 
continuous health care coverage under their previous employer's group 
health plan. So if a person has employer-sponsored health coverage for 
at least 12 months and switches to another employer who provides

[[Page E509]]

health benefits, no preexisting condition exclusion will be allowed.
  The Health Coverage Availability and Affordability Act also allows 
small employers to band together in associations to form multiple 
employer groups that could fully-insure or self-insure. Under current 
law, large businesses are allowed to buy health insurance under a 
different set of rules than small business. Large, self-insured 
businesses are exempted from State law in their health plans while 
small businesses are stuck with State mandates, premium taxes, and 
other forms of regulation. This inequity between big business and small 
business in large part explains why the premiums of corporate America 
are going down while small business premiums are going up.

  In addition, this legislation seeks to provide a greater incentive 
for the self-employed of this country to purchase health insurance by 
raising the amount they can deduct for health care costs from 30 
percent to 50 percent by the year 2003. One of the major problems 
facing small business is the high cost of health insurance. There are 
nearly 3 million self-employed Americans without health insurance. If 
this group of business owners were given a greater deduction, many of 
these uninsured would purchase insurance, substantially reducing the 
number of uninsured Americans.
  Mr. Chairman, H.R. 3103 encompasses measures that will enhance the 
current market system and make health insurance accessible and 
affordable for millions of Americans, and I strongly support its 
passage.

                          ____________________