Bush to talk about health insurance tonight


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President Bush is going to talk about a new plan tonight in his 2007 State of The Union Address to redcue the number of peole without health insurance.

The plan will be a collaboration between the federal government and the states.  Already, more than 12 states have taken initiatves to provode health insurance to the 47 million currently uninsuraned residents, particularly chidlren.

Those states include Massachusetts, California, Illinois, Pennsylvania, New York, Arkansas, Indiana, Michigan, Texas, New Jersey, Missouri, Washington, Oregon, Louisiana, Tennessee, Connecticut and Vermont.

The plan does not gains extra funding other than $30 billion the government spends annaually to care for people who visit hospitals and emergency rooms with health insurance.

Earlier, the President proposed standard tax reductions for those who purchase health insurance without being sponsored by their employers, but health insurance purchased by the employers will be subject to income taxes.

Democrats have questioned Bush's plan to offer the standard tax deductions for health insurance ¡ª $7,500 for individuals, $15,000 for families ¡ª while subjecting employer-paid health insurance to income taxes.

Republicans like Rep. Jim McCrery of Louisiana, top Republican on the House Ways and Means Committee as well have complained about the proposed tax on health insurance.

White House maintains that the proposed changes to the tax code is a reform, not tax hikes.

While about 20 percent taxpayers who get health insurance from tehir employers will pay higher taxes, officials say that they can adjust health coverage.

Eralier news reports say that the increased tax renevue from the emplyer-paid health insurance covers the tax loss due to the proposed tax breaks for the non-employer-paid health insurance, meaning the federal government does not gain much if any.

The following is some background for the plan President Bush is going to announce in his Address, provided by the White House.

In The State Of The Union Address, President Bush Will Announce His Proposals To Make Basic, Private Health Insurance Available And Affordable For More Americans.  Americans are fortunate to have the most advanced and innovative health care system in the world.  The President's plan will make private health insurance more affordable and increase the number of Americans with health insurance.  The plan will also help our Nation move away from reliance on government-run health care and toward a system in which Americans have better access to basic, affordable private insurance, and increased ownership of their medical decisions.

The President's Plan Includes Two Parts: Reforming The Tax Code With A Standard Deduction For Health Insurance So All Americans Get The Same Tax Breaks For Health Insurance And Helping States Make Affordable Private Health Insurance Available To Their Citizens.

The President's Plan Will Help More Americans Afford Health Insurance By Reforming The Tax Code With A Standard Deduction For Health Insurance ¨C Like The Standard Deduction For Dependents.  The President's primary goal is to make health insurance more affordable, allowing more Americans to purchase coverage. The President's proposal levels the playing field for Americans who purchase health insurance on their own rather than through their employers, providing a substantial tax benefit for all those who now have health insurance purchased on the individual market.  It also lowers taxes for all currently uninsured Americans who decide to purchase health insurance ¨C making insurance more affordable and providing a significant incentive to all working Americans to purchase coverage, thereby reducing the number of uninsured Americans.

Under The President's Proposal, Families With Health Insurance Will Not Pay Income Or Payroll Taxes On The First $15,000 In Compensation And Singles Will Not Pay Income Or Payroll Taxes On The First $7,500.
At the same time, health insurance would be considered taxable income.  This is a change for those who now have health insurance through their jobs.
The President's proposal will result in lower taxes for about 80 percent of employer-provided policies.
Those with more generous policies (20 percent) will have the option to adjust their compensation to have lower premiums and higher wages to offset the tax change.

The President's Affordable Choices Initiative Will Help States Make Basic Private Health Insurance Available And Will Provide Additional Help To Americans Who Cannot Afford Insurance Or Who Have Persistently High Medical Expenses.  For States that provide their citizens with access to basic, affordable private health insurance, the President's Affordable Choices Initiative will direct Federal funding to assist States in helping their poor and hard-to-insure citizens afford private insurance.  By allocating current Federal health care funding more effectively, the President's plan accomplishes this goal without creating a new Federal entitlement or new Federal spending.