Opening Statement of the Hon. Jim Ramstad, a Representative in Congress from the State of Minnesota

Hearing on Health Care Tax Credits to Decrease the Number of Uninsured

February 13, 2002

Mr. Chairman, thank you for calling this important hearing and for your strong leadership on decreasing the number of uninsured Americans through tax incentives.

The President’s health insurance tax credit proposal and the similar provision the House passed in December in the “Economic Security and Workforce Assistance Act” would go a long way toward providing uninsured Americans with the health insurance they so desperately need.

Over 40 million Americans currently have no health insurance.  With a weakened economy and double-digit health care inflation, this crisis is not likely to improve without bold action.

President Bush and this Committee are providing the leadership needed to tackle this issue.  We must examine creative ways to give more Americans access to quality, affordable health care.

I also want to compliment the Bush Administration for its proposal concerning Flexible Spending Accounts (FSAs), which allow workers to save for future health care costs.  The President’s proposal is similar to legislation I introduced, H.R. 1590, which allows workers to roll over $500 from one year to the next instead of forfeiting their FSA balance at the end of the year.   This reform will encourage workers to save for health care expenses and make smart purchasing decisions.

I certainly look forward to hearing from the witnesses today about ways to address the crisis of uninsured Americans, and once again, thank you, Mr. Chairman.