[Congressional Record (Bound Edition), Volume 150 (2004), Part 7]
[EX]
[Page 9585]
[From the U.S. Government Publishing Office, www.gpo.gov]


 THE INTRODUCTION OF THE SMALL BUSINESS HEALTH INSURANCE PROMOTION ACT

                                 ______
                                 

                            HON. MAX SANDLIN

                                of texas

                    in the house of representatives

                        Wednesday, May 12, 2004

  Mr. SANDLIN. Mr. Speaker, with nearly 44 million Americans lacking 
basic health care coverage, it is time to take action. Health care is a 
basic necessity--not a luxury--for all Americans.
  The House Republicans claim to be concerned about the uninsured, but 
actions speak louder than words. Consider what they've passed this 
year. Their budget resolution decimates Medicaid and the State 
Children's Health Insurance Program (SCHIP). The Republican budget 
requires a $2.2 billion cut in Medicaid funding, which will compromise 
the well-being of over 500 million children, their parents, seniors, 
and disabled individuals. This comes at a time when States are already 
in fiscal crisis, resulting in nearly every State cutting their own 
Medicaid program by slashing eligibility, cutting benefits, raising co-
payments and reducing provider payments.
  Republicans have also tried to allow $1 billion in SCHIP funding to 
expire on September 30, despite the critical need to provide health 
care coverage to needy children. Earlier Federal and State cuts to 
Medicaid and SCHIP have already caused irreparable harm to families in 
Texas. Since SCHIP cuts in Texas took effect last September 1, 2003, 
enrollment for kids has dropped from over 507,000 children to 377,051. 
For those children fortunate enough to retain some health coverage, 
they have had to endure the loss of all dental, vision, and hospice 
benefits.
  How is this acceptable? How can we tolerate cuts that will compound 
this problem?
  Mr. Speaker, it is a commonly held misconception that people without 
health insurance are people who don't work. Nationwide, more than eight 
in ten of the nearly 44 million uninsured persons in 2003 lived in 
families where the head of the family worked. In fact, in most States 
today, a significant portion of the workforce is without insurance.
  Too many hard-working, tax-paying American lack even the most basic 
health insurance coverage. It is time to move beyond the rhetoric and 
take action.
  My home State of Texas actually leads the nation with 27 percent of 
our employed or self-employed workers without health insurance. This 
can be partially attributed to the fact that many of those uninsured 
are working in small businesses. In 2000 more than 17 percent of the 
labor force in Texas worked for businesses with 20 or fewer employees. 
The prohibitive expense of health insurance is a barrier to most small 
employers offering health coverage. The United States Chamber of 
Commerce recently estimated that it costs small businesses 
approximately $9,000 a year to provide health insurance for each 
employee.
   Mr. Speaker, join with 87 of my colleagues today in offering 
legislation that will provide immediate, concrete relief by introducing 
the Small Business Health Insurance Promotion Act today. This 
legislation will help secure affordable coverage for millions of self-
insured individuals and employees of small businesses.
   As an incentive to provide coverage, the Small Business Health 
Insurance Promotion Act would make small businesses or self-employed 
individuals eligible to receive a 50 percent tax credit for four years 
to defray the cost of health insurance. The bill would also authorize 
funding to create state and national multi-insurer pools to provide 
comprehensive and affordable health insurance choices to small 
employers and the self-employed.
   To receive the tax credit, participating employers must offer all of 
their employees coverage through either the qualified state or national 
health insurance pools. These purchasing pools would ensure 
comprehensive and affordable health insurance. Participants would 
receive a choice of plans virtually identical to those available to 
Members of Congress and other Federal employees.
   I also join my fellow democratic colleagues today in introducing the 
FamilyCare Act and the Medicare Early Access Act. The former builds 
upon the Medicaid and SCHIP programs by providing new funding to cover 
working parents. This legislation is expected to cover over 7.5 million 
low-income parents as well as improve coverage of children. The 
Medicare Early Access Act addresses the serious problem faced by the 
many retirees who lose or do not have health coverage in retirement but 
are not yet eligible for Medicare. This legislation will allow 
uninsured people between the ages of 55 and 64 to purchase Medicare. 
Enrollees will be given a 75 percent refundable, advanceable tax credit 
which will make it affordable. This legislation could result in 
coverage of 3.5 million previously uninsured people.
   There are grave consequences for families without health insurance. 
People without coverage are less likely to get important preventive 
care and therefore are concomitantly more likely to suffer from serious 
health complications as problems go untreated. It also harms our 
economy. Sick people are not productive people. It makes sense to 
fortify the health of our nation.
   The Small Business Health Insurance Promotion Act, FamilyCare Act 
and Medicare Early Access Act that we are introducing today offer real 
solutions to real problems. Together these initiatives could provide 
health coverage to more than \1/2\ of the 44 million uninsured 
Americans. They represent a great step in the right direction that I am 
proud to be a part of.

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