[Congressional Record Volume 150, Number 124 (Tuesday, October 5, 2004)]
[Senate]
[Pages S10442-S10443]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. MURKOWSKI:
  S. 2893. 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, and for other purposes; to the Committee on 
Finance.
  Ms. MURKOWSKI. Mr. President, I believe all Americans should have 
access to affordable, high-quality health care. Rising health care 
costs impose a burden on families and small businesses and put coverage 
out of reach for many Americans. According to the most recent Census 
Bureau findings, 45 million Americans lack health insurance; about 
200,000 of the 45 million were Alaskans. The vast majority, nearly 80 
percent, of uninsured Alaskans in 2003-2004 were employed or members of 
working families.
  As part of the effort to address this problem, I have introduced 
legislation that will increase the number of insured Americans. The 
SAVE (Securing Access, Value, and Equality) Health Care Act offers a 
solution to the problems of accessibility, portability, and choice.
  My plan does not just increase funding for current government 
programs; my plan provides a path to greater opportunity, more freedom, 
and more control over your own health care and your own future.
  The SAVE Health Care Act would provide working class Americans with a 
tax credit that they can use to purchase health insurance. The act 
targets three-quarters of the total number of uninsured Americans by 
setting eligibility at 350 percent of poverty, or an Alaskan's annual 
income of $41,000 for an individual or $82,000 for a family of four.
  To help make health coverage more affordable for low and middle-
income individuals and families who do not have employer-provided 
coverage and who are not eligible for the expanded public programs, 
this legislation would provide a refundable tax credit of up to $1,000 
for individuals and up to $3,000 for families, which could be advanced 
on a monthly basis.
  The SAVE Act would also cover an additional 50 percent of any health 
insurance premiums not covered by the basic credit. This provision is 
targeted to help those who need health insurance the most--those who 
are sick, have pre-existing health conditions, or older Americans whose 
insurance prices are higher and who do not have access to employer-
based insurance.
  A tax credit proposal without this type of additional assistance 
would only help insure the young and the healthy because their premiums 
are

[[Page S10443]]

the lowest and most within reach financially. The additional credit is 
a key part of providing coverage to Americans with the greatest need.
  The SAVE Act would allow those who have access to employer-sponsored 
plans to have up to one-half of the credit they are eligible for to 
help them pay for their portion of the health insurance premiums. This 
credit amount is a balance designed to help employees afford their 
portion of employer-sponsored coverage without providing employers an 
incentive to shift more costs to their employees.
  The SAVE Act includes a provision that would make the premiums for 
qualified high-deductible health insurance plans that coordinate with 
Health Savings Accounts (HSAs) tax-deductible. Both individuals and 
their employers can contribute tax free dollars to an HSA, and the 
individual can use these dollars for qualifying out-of-pocket medical 
expenses.
  The SAVE Act provides small business owners a refundable tax credit 
for contributions they make to their employees' HSAs in the amount of 
$500 per worker with family coverage and $200 per worker with 
individual coverage. More than half of the uninsured are small business 
employees and their families.
  In addition to reducing the number of our nation's uninsured, this 
legislation will create an incentive for personal savings while shaping 
a health care marketplace driven by consumer choice.
  The SAVE Act would extend and expand the State high risk pool health 
insurance grant program that was established under the Trade Adjustment 
Act of 2002. Alaska is one of 31 States that currently operates a high 
risk pool. I commend the work of the Alaska Comprehensive Health 
Insurance Association (ACHIA), the nonprofit organization that provides 
health insurance to 467 Alaska residents who would otherwise be denied 
coverage because of medical conditions. Under this legislation, Alaska 
will receive a portion of the $75 million allocated in this legislation 
to continue to operate our high risk pool and to continue insuring 
Alaskans that really need this program.
  The SAVE Act would establish a grant program in which States would be 
encouraged to establish Voluntary Choice Cooperatives, or VCCs. VCCs 
essentially increase the clout of small businesses in negotiating with 
insurers. Premiums are generally higher for small businesses because 
they do not have as much purchasing power as large companies. This 
limits the ability of small businesses to bargain for lower rates. They 
also have higher administrative costs because they have fewer employees 
among whom to spread the fixed cost of a health benefits plan. 
Moreover, VCCs decrease the risk of adverse selection and spread the 
cost of health care over a broader group.
  I believe this well-rounded approach will provide significant help 
with the cost and availability of health insurance, and make a real 
difference in reducing the number of uninsured Americans.
                                 ______