ADVISORY
FROM THE COMMITTEE ON WAYS AND MEANS

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

Congressman Bill Thomas (R-CA), Chairman of the Committee on Ways and Means, today announced that the Committee will hold a hearing on the President's proposal to reduce the number of uninsured through tax credits. The Committee will also examine other tax credit proposals, such as the one that passed the House in December. The hearing will take place on Wednesday, February 13, 2002, in the main Committee hearing room, 1100 Longworth House Office Building, beginning at 10:00 a.m.

In view of the limited time available to hear witnesses, oral testimony at this hearing will be from invited witnesses only. Witnesses will include Bush Administration experts on health care tax credits and proposals to help reduce the uninsured population. However, any individual or organization not scheduled for an oral appearance may submit a written statement for consideration by the Committee and for inclusion in the printed record of the hearing

BACKGROUND:

On February 4, 2002, the President submitted his fiscal year 2003 budget to the Congress, which included a refundable, advanceable tax credit for the purchase of health insurance. This initiative addresses the fundamental, chronic, institutionalized uninsured problem in America. Despite recent declines in the total number of uninsured - 38.5 million in 2000, down from a high of 44 million in 1998 - the prospects for a continued and sustained rise in the uninsured have grown with the resurgence of double digit health inflation and a war-weakened economy.

Premiums for employer-sponsored health insurance increased 11 percent last year, the largest increase in recent years, and projections for the near future peg health inflation even higher. As health costs are the primary reason most people forgo insurance, the return of double-digit health inflation will likely exacerbate the uninsured problem. Because most individuals obtain health coverage through their employers, the combination of higher premiums and recent increases in unemployment mean providing increased access to affordable insurance policies will prove more challenging and requires more creative solutions.

In December of 2001, the House passed economic stimulus legislation (H.R. 3529, the "Economic Security and Worker Assistance Ace of 2001") that included an advanceable, refundable tax credit for the purchase of health insurance. That bill would provide a 60-percent credit for the purchase of qualified insurance policies for those involuntarily terminated from their jobs. Individuals would have the choice to stay in their employer-sponsored COBRA policy or to purchase a policy in the individual market. The President's 2003 budget provides a $1,000 credit for individuals and up to $3,000 for families for the purchase of qualified policies up to certain income limits.

In announcing the hearing, Chairman Thomas stated: "This hearing will help lay the groundwork for insuring all Americans. Because nearly 40 percent of uninsured adults and 25 percent of uninsured children have no regular source of health care, they receive less health care and often resort to more costly interventions such as inappropriate emergency room utilization. While it was unfortunate the Senate failed to act on any uninsured proposal, I am committed to working with Republicans and Democrats and the Administration to ensure access to quality, affordable health insurance."

FOCUS OF THE HEARING:

The focus of the hearing is to review various proposals to provide a refundable tax credit for the purchase of health insurance, including the President's proposal.

DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:

Please Note: Due to the change in House mail policy, any person or organization wishing to submit a written statement for the printed record of the hearing should send it electronically to "hearingclerks.waysandmeans@mail.house.gov", along with a fax copy to 202/225-2610 by the close of business, Wednesday, February 27, 2002. Those filing written statements who wish to have their statements distributed to the press and interested public at the hearing should deliver their 200 copies to the full Committee in room 1102 Longworth House Office Building, in an open and searchable package 48 hours before the hearing. The U.S. Capitol Police will refuse unopened and unsearchable deliveries to all House Office Building.

FORMATTING REQUIREMENTS:

Each statement presented for printing to the Committee by a witness, any written statement or exhibit submitted for the printed record or any written comments in response to a request for written comments must conform to the guidelines listed below. Any statement or exhibit not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee.

1. Due to the change in House mail policy, all statements and any accompanying exhibits for printing must be submitted electronically to "hearingclerks.waysandmeans@mail.house.gov", along with a fax copy to 202/225-2610, in Word Perfect or MS Word format and MUST NOT exceed a total of 10 pages including attachments. Witnesses are advised that the Committee will rely on electronic submissions for printing the official hearing record.

2. Copies of whole documents submitted as exhibit material will not be accepted for printing. Instead, exhibit material should be referenced and quoted or paraphrased. All exhibit material not meeting these specifications will be maintained in the Committee files for review and use by the Committee.

3. A witness appearing at a public hearing, or submitting a statement for the record of a public hearing, or submitting written comments in response to a published request for comments by the Committee, must include on his statement or submission a list of all clients, persons, or organizations on whose behalf the witness appears.

4. A supplemental sheet must accompany each statement listing the name, company, address, telephone and fax numbers where the witness or the designated representative may be reached. This supplemental sheet will not be included in the printed record

The above restrictions and limitations apply only to material being submitted for printing. Statements and exhibits or supplementary material submitted solely for distribution to the Members, the press, and the public during the course of a public hearing may be submitted in other forms.

Note: All Committee advisories and news releases are available on the World Wide Web at http://waysandmeans.house.gov.

The Committee seeks to make its facilities accessible to persons with disabilities. If you are in need of special accommodations, please call 202-225-1721 or 202-226-3411 TTD/TTY in advance of the event (four business days notice is requested). Questions with regard to special accommodation needs in general (including availability of Committee materials in alternative formats) may be directed to the Committee as noted above.