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Skriven 2007-02-23 23:31:16 av Whitehouse Press (1:3634/12.0)
Ärende: Press Release (0702234) for Fri, 2007 Feb 23
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Fact Sheet: Making Private Health Insurance More Affordable for Low-Income
Americans
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For Immediate Release Office of the Press Secretary February 23, 2007

Fact Sheet: Making Private Health Insurance More Affordable for Low-Income
Americans

ÿÿWhite House News

ÿÿÿÿÿ President Bush Participates in a Roundtable on Health Care
Initiatives in Tennessee ÿÿÿÿÿ In Focus: Health Care

"This plan will help a lot of people afford [health insurance], like the
uninsured, the working uninsured. _ I want you to understand that the
standard deduction can mean a lot to a fellow who's working and trying to
be able to afford private health insurance."

- President George W. Bush, 2/21/07

In His State Of The Union Address, The President Proposed Two Initiatives
That Will Work Together To Help More Americans Afford Basic Private Health
Insurance. The President's proposed standard deduction for health insurance
will reform the tax code to make private health insurance more affordable
and to level the playing field so those who buy health insurance on their
own get the same tax advantage as those who get health insurance through
their jobs. For those who remain unable to afford coverage, the President's
Affordable Choices Initiative will help eligible States assist their
low-income and hard-to-insure citizens in purchasing private health
insurance.

A Standard Deduction For Health Insurance Will Help Low-Income Workers And
Families Afford Coverage

The President Has Proposed Replacing Our Current Health Insurance Tax
System With A Standard Deduction For Health Insurance. For the millions of
Americans who have no health insurance, the standard deduction would help
put a basic private health insurance plan within reach.Under the
President's proposal, families purchasing health insurance will pay no
income or payroll taxes on $15,000 of income. Single Americans purchasing
health insurance will pay no income or payroll taxes on $7,500 of income.

Under The President's Proposal, There Are Significant Tax Benefits At The
Lower End Of The Income Distribution. The President's proposal will lower
taxes for those who purchase insurance on their own who get no benefit
under the current tax code. In general, low-income people are less likely
to get insurance through their jobs. The standard deduction for health
insurance will level the playing field, giving these individuals the same
tax break that people receive if they get insurance through their jobs.
This will help individuals who purchase insurance on their own afford that
coverage.

The President's Proposal Will Remove The Perverse Incentive To Purchase
More Expensive Health Insurance That Is Driving Up Coverage Costs. Under
the current tax code, the more expensive the health insurance plan people
obtain through their employers, the more tax relief they get. This makes
the insurance market less competitive and pushes up prices for everyone by
encouraging many workers to choose more expensive health insurance than
they would choose if the tax code were not dulling their incentive to
determine which policy represents the highest value.

The President's Proposal Will Rein In Health Costs By Promoting High Value
Coverage. By replacing the current unfair system with a standard deduction
for health insurance, the President's proposal will give working families
and individuals an incentive to purchase coverage _ and the same tax
advantages for purchasing that insurance _ and encourage them to evaluate
which health insurance policies represent the highest value for quality
care.

The Affordable Choices Initiative Will Help Make Health Insurance
Affordable For Those Most In Need

The Affordable Choices Initiative Will Support States' Efforts To Help
Their Low-Income And Hard-To-Insure Citizens Purchase Basic Private Health
Insurance. States that make basic private health insurance available to all
their citizens would receive redirected institutional subsidies to help
them provide this coverage to the poor and the sick. Under the Affordable
Choices Initiative, existing Federal funds will be used to create
Affordable Choices grants to assist States in helping provide private
health insurance to those most in need without increasing Federal health
spending.
  þ The Affordable Choices Initiative Is An Essential Component Of The
    President's Plan To Help More Americans Afford Private Health
    Insurance. President Bush has committed his Administration to working
    with Governors to make basic private health insurance more accessible
    to the poor and the sick.
      þ The Federal Government's Current System Of Paying For Health Care
        Results In Billions Of Dollars Being Spent Inefficiently, Through A
        Patchwork Of Subsidies And Payments For The Uninsured To Providers.
        Medicare and Medicaid payments to providers include indirect
        payments for uncompensated care.
      þ The Health Care System Could Operate More Efficiently If Some
        Portion Of Institutional Payments Instead Were Redirected To Help
        The Poor And The Sick Afford Health Insurance. The uninsured often
        use emergency rooms for primary care, which leads to suboptimal
        care and excessive spending. If this public spending were focused,
        in a budget-neutral manner, on helping the uninsured purchase
        private insurance, people would receive the care they need in more
        appropriate settings and at a more reasonable cost.
  þ The President Has Asked U.S. Health And Human Services Secretary Mike
    Leavitt To Work With The Congress And The States On The Affordable
    Choices Initiative To Reform The Health Care Marketplace. The health
    care system needs to be transformed to emphasize upfront, affordable
    private health insurance options for both high-risk and low-income
    individuals.
  þ The Affordable Choices Initiative Will Encourage States To Innovate.
    State participation will be voluntary, and States will design their own
    programs, subject to Federal approval.
      þ States could offer direct premium assistance to low-income or
        hard-to-insure populations to purchase private health insurance.
      þ States could establish high-risk pools, or expand existing
        high-risk pools, for very sick individuals who are deemed
        uninsurable in the non-group market.
      þ States could help facilitate pooling of individuals and small
        businesses and organize their access to private health plans.

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