WASHINGTON, DC – Today, Rep. David Schweikert (R-AZ) introduced legislation to provide financial relief to millions of American families facing the burden of high health care costs. The proposal would reduce the current 7.5 percent income threshold for the medical expense deduction to 5 percent for years 2020 and 2021, and make the 7.5 percent income threshold permanent for all other years.
“Today, we take a critical step forward to help hard-working Americans afford their health care expenses,” Rep. Schweikert said. “I am proud to introduce this legislation to provide more financial relief for health-care costs and reduce the burden many face when receiving a bill for their care. Without this bill, it will become harder for many Americans, especially our seniors and individuals with chronic conditions or disabilities, to get tax relief for high health care costs. This is an unacceptable outcome, and I am pleased to introduce legislation to fight this burden, especially during a global pandemic.”
“At a time when coronavirus has wreaked havoc on people’s health and our economy, easing the burden of Americans’ health-care expenses and enhancing certainty in our tax code just makes sense. I’m thankful to Rep. Schweikert for introducing this bill today,” Ways and Means Committee Republican Leader Kevin Brady (R-TX) said.
“As an organization representing nearly 2.2 million seniors, the high cost of medical services is a meaningful concern for AMAC members. Congressman Schweikert’s timely legislation specifically helps seniors by significantly lowering the income threshold for medical expense deductions. Mature Americans comprise close to the majority of people who claim this deduction, and reducing the income threshold will allow more of them to experience the much needed tax relief from high medical costs this bill provides,” Bob Carlstrom, President, AMAC (Association of Mature American Citizens) Action said.
To help ease the uncertainty facing Americans during this time, for 2020 and 2021, this legislation will make it easier for more families to get relief from high health-related expenses, such as the cost of COBRA premiums for those who lost their job-based health insurance. And by making this deduction permanent at 7.5 percent of income, this legislation will give individuals and families increased support and certainty in the future.
This legislation is supported by the Arizona Health Care Association, the Association of Mature American Citizens, and AARP.
By enacting this legislation, Congress would help provide important tax relief to those with chronic conditions, older Americans, children and individuals with disabilities who are facing the high cost of health care expenses. The medical expense deduction is currently subject to a 7.5 percent income threshold that will revert back to a 10 percent income threshold at the end of 2021.
This legislation would permanently extend the 7.5 percent rate, as well as reduce it further for 2020 and 2021 to help assist those dealing with financial uncertainty due to the pandemic. This bill would especially help those with limited income, including our senior citizens with severe medical needs.
To read the full text of the legislation, click HERE.
Was this message forwarded to you? CLICK HERE to subscribe to our emails.