For Immediate Release
April 12, 2003
Contact Laura Clay Trueman
(202) 626-8573, ltrueman@jeffersongr.com

The Coalition for Affordable Health Coverage

Congress Earmarks $50 Billion for the Uninsured

Last Friday, Congress passed a Budget Resolution for fiscal year 2004 containing a reserve fund of $50 billion for the uninsured. The resolution contains no instructions on what form this assistance to the uninsured will take, that is left to the Congressional committees of jurisdiction. However, in order to access that $50 billion, both the Finance and Ways and Means Committees would have to use it to “increase access to health insurance for the uninsured.”

“This is very good news for those who need help,” says Laura Clay Trueman, Executive Director of the Coalition for Affordable Health Coverage (CAHC). “Although the public storm has been about prescription drug benefits, the dire needs of the uninsured have not –and will not—go away.” CAHC was heavily involved in working with Senate Budget Committee Chairman Don Nickles in getting the “reserve fund” language inserted into the Resolution and then worked with key House members to preserve this funding for the uninsured through conference negotiations.

Now that funding will be available, the Coalition for Affordable Health Coverage urges Congress to utilize market-based solutions to reach the uninsured. CAHC is pushing for the creation of a refundable and advanceable tax credit for the purchase of private health insurance. “It is time to try something new,” says Trueman. “Those who want to expand Medicaid and other public programs to help the uninsured are well meaning but are pushing a solution that hasn’t really worked for this 41 million.” A study released by Blue Cross and Blue Shield in February 2003, found that almost one-third of those currently uninsured are already eligible for public programs like Medicaid and SCHIP. Trueman says, “It makes no sense to expand eligibility in hopes of helping the uninsured when we can’t even get those already eligible into the program.”

The $50 billion is enough to fund a tax credit similar to what President Bush has proposed. His credit, $1000 for individuals and $3000 for families, would make insurance more affordable and give individuals the ability to make their own choices based on their health care needs. It appears that a majority of members on the key Committees of jurisdiction have supported tax credits in cosponsoring bills in the past. “This may be the year that Congress both hears and responds to the needs of uninsured Americans,” says Coalition member, Dede Spitznagel, Vice President of the Healthcare Leadership Council.

Coalition members include: American College of Cardiology*, Healthcare Leadership Council*, Fortis Health*, National Association of Health Underwriters*, National Association of Manufacturers*, Aetna, American Campaign for Consumer Choice and Lower Health Costs, American Legislative Exchange Council, American Medical Association, American Osteopathic Association, Bayer Corporation, National Association for the Self-Employed, U.S. Chamber of Commerce, Wyeth Pharmaceuticals. *Board Members.