[Congressional Record Volume 152, Number 44 (Friday, April 7, 2006)]
[Senate]
[Page S3380]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS--APRIL 5, 2006

      By Mr. ENSIGN (for himself and Mr. DeWine):
  S. 2554. A bill to amend the Internal Revenue Code of 1986 to expand 
the permissible use of health savings accounts to include premiums for 
non-group high deductible health plan coverage; to the Committee on 
Finance.
  Mr. ENSIGN. Mr. President, I rise to introduce legislation to help 
individuals, small businesses, and the uninsured afford health 
insurance coverage. Today, 60 percent of Americans obtain health 
insurance coverage through their employers. The system of employer-
sponsored health insurance has long provided coverage to the vast 
majority of America's workers and their families. However, a 
significant number of Americans, particularly those who work for small 
businesses, lack access to coverage through the employment-based 
system.
  Employees of small businesses often go uninsured or purchase health 
insurance coverage on their own because continuing double-digit cost 
increases and burdensome state regulations are making it difficult for 
small employers to offer health insurance coverage.
  Health insurance is valuable for a number of reasons. People who are 
insured are protected against uncertain and high medical expenses and 
are more likely to receive needed and appropriate health care. Having 
health insurance is also associated with improved health outcomes and 
lower mortality, so employees with health insurance are more likely to 
be productive workers.
  Health savings accounts have become an important option for 
individuals and small businesses who have struggled to afford health 
insurance coverage.
  The Affordability in the Individual Market Act, also known as the AIM 
Act, builds on the foundation of a previously passed law that 
established Health Savings Accounts. These accounts allow individuals 
with high-deductible health insurance to set aside money, tax free, up 
to a set limit, to use for routine medical expenses.
  You can make a contribution to Health Savings Accounts or your 
employer can make a contribution to the account. If you don't use all 
the money in a year you can roll it over, tax free, to meet future 
expenses.
  Today, individuals trying to build up a nest egg for their retiree 
health expenses through a Health Savings Account are not able to use 
these funds to purchase their health insurance, except under limited 
circumstances.
  The AIM Act would expand the definition of what is considered a 
``qualified medical expense'' under the Internal Revenue Code to allow 
individuals and families who purchase high-deductible health plans on 
their own to use their Health Savings Accounts to pay plan premiums. It 
seems completely reasonable to allow these individuals to pay high-
deductible health plan premiums with Health Savings Account dollars.
  I ask my colleagues to consider cosponsoring this responsible, 
common-sense legislation.
  Mr. DeWINE. Mr. President, I am cosponsoring a bill today, along with 
Senator Ensign and Senator Frist, to add another option for individuals 
and families to purchase affordable health insurance.
  The law currently allows individuals and families to set aside tax-
free savings for lifetime healthcare needs in Health Savings Accounts 
that are combined with a high deductible health insurance plan. This 
has already made health care more affordable. This important 
legislation expands on the foundation of Health Savings Accounts by 
allowing individuals and families to use their Health Savings Accounts 
to pay the premiums of their health insurance plans.
  This is the right thing to do, individuals and families need 
affordable health insurance options. I urge my colleagues to join 
Senator Ensign, Senator Frist and me in supporting this legislation.

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