    [Public Papers of the Presidents of the United States: George W. Bush (2007, Book I)]
    [June 27, 2007]
    [Pages 810-812]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks Following a Discussion on Health Care
    June 27, 2007

        Good afternoon. Thank you all for being here. I just finished a
    really interesting and good discussion with a group of distinguished
    health care experts. I appreciate you all taking your time. Mr.
    Secretary, thank you for being here as
    well.
        These men and women have different specialties, different
    backgrounds, and different ideas, but they all agree on the--an
    important fact: America's health care system is in need of serious
    reform. And I agree. The American people share that belief as well. In
    my conversations with Republicans and Democrats and businessowners and
    workers, I hear the same concerns: America's health care is too costly,
    it's too confusing, it leaves too many people uninsured.
        The fundamental question is, what should we do about it? On that
    question, our Nation has a clear choice. One option is to put more power
    in the hands of government by expanding Federal health care programs and
    empowering bureaucrats to make medical decisions. The other option is to
    put more power in the hands of individuals by making private health
    insurance more affordable and accessible and empowering people and their
    doctors to make the

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    decisions that are right for them. That's the divide.
        Debate between these two options is now beginning to play out on
    Capitol Hill. Democrat leaders in Congress are considering a massive
    expansion of government health care through a program called SCHIP,
    which stands for State Children's Health Insurance Program. This program
    was designed to ensure that poor children without health insurance
    receive the medical care they need. I support SCHIP for that purpose. I
    think it makes sense to have a program to help poor children get the
    health insurance they need.
        My budget increases funding for the poor children in SCHIP. The
    problem is that Democrats want to expand SCHIP far beyond its original
    intent. If their proposal becomes law, SCHIP would expand its reach to
    include children from family that earn as much as $80,000 a year as well
    as some adults. This is a massive expansion of the program.
        And as a result, many of these people would give up the private
    health insurance they have now as they move to government health care.
    In fact, a recent study estimated that as many as half the children
    enrolling in SCHIP would drop their private health coverage, which is
    contrary to the program's original purpose.
        The Democrats' proposal is part of a larger strategy. At the same
    time that they try to expand SCHIP to older citizens, they are trying to
    expand Medicare to younger citizens. Their goal is to take incremental
    steps down the path to government-run health care for every American.
    It's the wrong path for our Nation. Government-run health care would
    deprive Americans of the choice and competition that comes from the
    private market. It would cause huge increases in government spending,
    which could lead to higher taxes. It would result in rationing,
    inefficiency, and long waiting lines. It would replace the doctor-
    patient relationship with dependency on people here in Washington, DC.
        And there's a better way forward. We strongly believe that the SCHIP
    proposal put forward by some Democrats in Congress needs to be resisted.
    And here's what we believe. We believe there's a better alternative.
    Instead of expanding SCHIP beyond its purpose, we should return its
    focus to the children most in need. And instead of encouraging people to
    drop private coverage in favor of government plans, we should work to
    make basic private health insurance affordable for all Americans.
        My administration is pursuing this goal in a variety of innovative
    ways. We created health savings accounts which allow people to save, tax
    free, for routine medical expenses and help reduce the cost of private
    insurance. We're working to pass association health plans so that small
    businesses can insure their workers with private coverage at the same
    discounts that big businesses get. We're working to stop junk lawsuits
    to drive up private insurance premiums and good doctors out of practice.
        The best way to make private insurance more affordable, however, is
    to reform the Tax Code. Under current law, workers who are fortunate
    enough to get health insurance from their employers receive a tax
    benefit. But if you buy insurance on your own, you get no tax benefit.
        That's unfair, so I propose leveling the playing field. Under my
    plan, every family with private health coverage will receive a standard
    tax deduction of $15,000. That means families could deduct $15,000 from
    their income before they pay taxes, no matter where they get their
    health insurance. I'm pleased that many health care experts and Members
    of Congress share the objective for ending a bias in the Tax Code.
        Now, I recognize some of them believe a tax credit for health
    insurance would be a better way to do so. For example, some have
    proposed a tax credit of $5,000 for every family with private coverage.
    This would have a similar outcome as the standard deduction I proposed,
    and I'm open

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    to further discussions about this--about these two options.
        Whichever plan we choose, reforming the Tax Code would have a major
    impact on American health care. That's what's important for our citizens
    to understand. There's a better way from expanding the government, and
    that is to reform the Tax Code. For example, just as tax incentives for
    homeownership have encouraged more Americans to buy homes through the
    private housing market, new incentives for health insurance would lead
    more Americans to buy coverage through the private health insurance
    market. And that's what we want. That ought to be the goal of this
    country.
        By reforming the Tax Code, it would help more than 100 million
    people who are now covered by employer-provided insurance reduce their
    tax bills. Those who now purchase health insurance on their own would
    save money on their taxes for the first time. And as many as 20 million
    others who have no health insurance would purchase basic coverage.
        While the Federal Government is working to reform the Tax Code,
    States should address other problems in our health care system. That's
    precisely what the Secretary is doing,
    working with our States. States should make reforms to ensure that their
    citizens have access to basic private health insurance. It's a dual
    responsibility. If we want a better system, the Federal Government has
    got a responsibility to reform, and so do States. As they do so, they
    should ensure that help is provided to those who can least afford
    coverage.
        We're at a decisive moment in the debate over health care. The
    choices we make now will set the direction of medical care in America
    for years to come. I'm going to continue to work with members of both
    parties to look past tired, old proposals that make bigger government
    programs the solution to every problem. I'm going to continue to push
    for new and innovative ways to help every American afford basic private
    health insurance. I will continue to put my trust in the good judgment
    of the American people, and I'll put my trust in the finest system of
    private medicine in the world.
        I want to thank you all for coming. Thanks for your interest. Thank
    you.

    Note: The President spoke at 2:18 p.m. in the Roosevelt Room at the
    White House. Participating in the discussion were Secretary of Health
    and Human Services Michael O. Leavitt; John B. Breaux, senior counsel,
    Patton Boggs; Stuart M. Butler, vice president of domestic and economic
    policy studies, Heritage Foundation; Len Nichols, director, health
    policy program, New America Foundation; C. Eugene Steuerle, senior
    fellow, Urban Institute; Grace-Marie Turner, president, Galen Institute;
    and Gail Wilensky, senior fellow, Project HOPE.