DEMOCRATIC PROPOSALS TO COVER THE UNINSURED

SUMMARY

Every year, nearly 44 million Americans go without health insurance.  According to the Institute of Medicine this crisis costs society $60-$135 billion dollars every year.  Covering the uninsured is essential to the health and long-term economic well being of the nation.  For this reason, Congressmen John D. Dingell, Charles B. Rangel, Pete Stark, Sherrod Brown, Max A. Sandlin, Jr., Henry A. Waxman and many other Democrats are proposing three pieces of legislation that could cover more than 20 million uninsured Americans.

Together, the FamilyCare, Medicare Early-Access, and Small Business Health Insurance Promotion Acts are effective solutions that would expand proven programs and create new incentives for the purchase of guaranteed, affordable coverage options.  Under these plans, more than half of the 44 million uninsured Americans would have access to new, affordable health insurance options.  Millions more who purchase expensive coverage in the individual market would also gain access to more affordable coverage options.  Major provisions of the three bills are outlined below.

 The FamilyCare Act of 2004:

• States would have access to $50 billion in new federal funding to cover parents of children in the Medicaid or CHIP programs if the family has an income below 200 percent of the federal poverty level, that’s $31,340 for a family of three.
• Helps families transition from welfare to work by maintaining Medicaid coverage for one year.
• States would have new options for covering legal immigrant children, pregnant women and parents through the Medicaid and CHIP programs.
• Tools would be made available to states to better identify and enroll families in Medicaid and CHIP.

 The Medicare Early Access Act:

• Individuals between age 55 and 65 who do not have access to group or public health insurance would be able to buy Medicare coverage.  Early retirees who have coverage through a retiree health plan are also eligible to participate.
• Enrollees would receive the full range of Medicare benefits.
• Participants would be charged an actuarially fair premium to participate, but 75 percent of that premium would be covered by an advanceable, refundable tax credit.
• The program would create a new Early Access Trust Fund to collect premiums and pay for services, without financially affecting the Medicare program.

 The Small Business Health Insurance Promotion Act:

• Small businesses and self-employed individuals would receive a tax credit equal to 50 percent of the cost of health insurance coverage.  Participants receive the credit for 4 years as an incentive. 
• The credit is available to all small employers (2-50 employees) and self-employed individuals who purchase coverage through qualified state or national health insurance purchasing pools.
• The state and national purchasing pools -- based on the four most popular Federal Employee Health Benefit Plans (FEHBP) -- would provide guaranteed, quality coverage at affordable rates.
• The pooling arrangements would be available to ALL small employers and the self-employed (even those not using the tax credit).