Health Insurance

Floor Speech

HEALTH INSURANCE -- (Senate - October 01, 2007)

Mr. GRASSLEY. Mr. President, I am here today to talk about health insurance. Congress is well aware of the ever increasing number of the uninsured. Not to mention the fact that health costs continue to rise at an alarming rate. Make no mistake, the numbers are sobering.

But I am not here to dwell on the past and present. I stand here today to talk about the future. I stand here to discuss ways to expand access to health insurance and to change the inequities in the tax treatment of health insurance.

During the debate on SCHIP, I engaged in a colloquy with Senators BURR, COBURN, MARTINEZ, CORKER, and BENNETT. During that exchange, I explained that, currently, a taxpayer who receives health insurance through his or her employer is not taxed on the cost of the health coverage. I also explained that individuals who do not receive health coverage through their employer generally do not receive a tax benefit. Similarly, a tax benefit is not afforded to people who are not employed and purchase health insurance on the individual market.

I noted that Republicans and Democrats alike agree that Congress should ``level the playing field'' and expand access to health insurance. The question is how. Senators BURR, COBURN, MARTINEZ, CORKER, and DOLE have introduced a proposal that would eliminate the exclusion for employer-provided health coverage. It would provide a flat tax credit to all Americans who purchase ``qualifying health insurance.'' I commend the Senators for their leadership, and I intend to work with them on ways to expand access to health insurance.

Senators WYDEN and BENNETT have also introduced a proposal that would expand access to health insurance. Senators GREGG, BILL NELSON, and ALEXANDER have cosponsored the proposal. Most recently, Senators STABENOW, LANDRIEU, and COLEMAN cosponsored the legislation. This bipartisan legislation is a ``patient-driven'' approach to reforming our health care system. I want to stress, a ``patient-driven'' approach to reforming health care.

A ``patient-driven'' approach means the patient can shop for their own health care in a competitive marketplace, which will allow them to choose the type of health insurance that meets their needs. Many in the Democratic Party, including several of the Democratic Presidential candidates, want a government-run single-payer health care system that is not ``patient-centered.'' This is a nonstarter and is bad policy. Recent polling shows that the American public thinks so. That is, the majority of Americans do not want a government-run system.

I want to reform the health care system through the Tax Code. I want to cap or eliminate the exclusion for employer-provided health coverage and offer Americans a choice between a tax credit and a deduction for health insurance. I want to condition these tax subsidies on States undertaking certain insurance reforms. I want to give the States the flexibility to decide what types of reforms are best for their constituencies.

This ``patient-driven'' approach--with insurance reforms and changes in the tax treatment of health insurance--should make health insurance more affordable. And it should significantly reduce the number of the uninsured.

During my tenure in the Senate, I have sought to build bridges between Republicans and Democrats. I believe that there are times where Republicans and Democrats need to come together to produce results.

An example of my efforts to work in a bipartisan manner is the bipartisan SCHIP legislation that was overwhelmingly passed by this body. In the spirit of bipartisanship, I join Senator Wyden in cosponsoring the Healthy Americans Act. The Healthy Americans Act is a ``patient-driven'' approach to reforming our health care system.

While I support this ``patient-driven'' approach, I have serious concerns about a number of the provisions of the Healthy Americans Act. For example, like many of the Democratic Presidential candidates, the act would require all individuals to buy health insurance. I support accessibility to private insurance and differ with my colleagues on this point. Also, Senator Wyden's approach is more regulatory than I would prefer.

In addition, I am not endorsing the repeal of the noninterference clause in Medicare Part D. That is not going to be on the table. So my cosponsorship is not an endorsement of these elements. Instead, I am cosponsoring the Healthy Americans Act to add my voice to the call for significant changes in our health care system.

What we have here is Republicans and Democrats coming together to solve a problem. This is what bipartisanship is all about. We are all on the same page when it comes to the big picture; that is, reforming our health care system and expanding access to health insurance.

We have serious problems, and we need serious people to solve them. So let's put politics aside, roll up our sleeves and work in a bipartisan way to reform our health care system.

Make no mistake, my cosponsorship of the Healthy Americans Act is only one step in the process. I intend to work with Senators BURR, COBURN, MARTINEZ, CORKER, and DOLE on their health care reform proposal. I intend to work with Chairman Baucus and members of the Senate Finance Committee on small business health reforms, along with more comprehensive health care reform proposals like the Healthy Americans Act. Let's get serious.

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