[Congressional Record Volume 148, Number 108 (Thursday, August 1, 2002)]
[Senate]
[Pages S7953-S7954]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HUTCHINSON:
  S. 2889. A bill to amend the Internal Revenue Code of 1986 to allow 
individuals a refundable credit against income tax for the purchase of 
private health insurance; to the Committee on Finance.
  Mr. HUTCHINSON. Mr. President, there are 39 million uninsured people 
in America, and that number is predicted to grow to 50 million by 2010. 
Surprisingly, 80 percent of the uninsured are members of working 
families, who work hard everyday but simply cannot afford the rising 
cost of health care.
  According to a recent survey by Hewitt Associates, the average 
insurance premium will increase more than 20 percent in 2003. This is a 
sharp increase from earlier forecasts. Such an increase is in addition 
to the double digit increase in premiums anticipated this year.
  I am pleased today to introduce the Securing Access Value and 
Equality in Health Care Act, or SAVE Act. This bill will provide every 
American with a pre-payable, fully refundable tax credit toward the 
purchase of health insurance.
  The tax credit will be $1,000 for individuals, $2,000 for married 
couples, and $500 per dependent, up to $3,000 per family. An additional 
50 percent will be added for any additional premiums to assist those 
with higher costs. By being pre-payable, the credit will be available 
to individuals at the time of purchase, instead of when they receive 
their annual tax return.
  A study by Professor Mark Pauly at the Wharton School at the 
University of Pennsylvania showed that a credit like that contained in 
the SAVE Act would remove 20 million Americans from the ranks of the 
uninsured.
  The SAVE Act will provide direct assistance to millions of Americans, 
and

[[Page S7954]]

over 498,000 uninsured Arkansans, in affording health insurance. I urge 
my colleagues to support this important legislation.
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