WASHINGTON – Sen. Chuck Grassley, ranking member of the Committee on Finance, this week became a co-sponsor of the Healthy Americans Act, a health care reform bill sponsored by Sen. Ron Wyden, Democrat of Oregon, and Sen. Bob Bennett, Republican of Utah. Grassley made the following statement on his decision to co-sponsor the legislation.
Statement of Sen. Chuck Grassley
Co-sponsorship of the Healthy Americans Act
October 2, 2007
We’re all well-aware of the ever-increasing number of the uninsured, that health costs continue to rise at an alarming rate, and that Americans who do have health insurance are anxious about losing that health insurance. They fear losing their jobs and losing their health insurance, or that their employer will decide to drop coverage altogether. Congress has to take action to ease that anxiety and to increase Americans’ access to secure, affordable health insurance coverage.
Republicans and Democrats alike are engaged and looking for solutions. Stakeholders from the business community, consumer groups, health care providers, and organized labor are focused on the problem and offering their ideas. As a country, we need this national discussion to occur. As ranking member of the Committee on Finance, with jurisdiction over tax policy, I’m taking a particular look at what the tax code does and doesn’t do to help Americans access health insurance. Tax policy combined with market forces can be a powerful force in making things affordable or accessible, and we need to harness its full power on the health care front.
During the debate on the State Children’s Health Insurance Program, 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. In its place, 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, and in the spirit of bipartisanship, I have joined Senator Wyden and Senator Bennett in co-sponsoring the Healthy Americans Act. The Wyden-Bennett bipartisan legislation offers elements that are consistent with a “patient-driven” approach to improving our health care system. A “patient-driven” approach means people can shop for their own health insurance in a competitive marketplace, which will allow them to choose the type of health care coverage that meets their needs. Many in the Democratic Party, including several of the Democratic presidential candidates, want a government-controlled system that is not “patient-driven.” This is a non-starter and is bad policy. And the majority of Americans do not want the government making their health care decisions for them.
I’m interested in exploring ways to reform the health care system through the tax code. I’m interested in examining whether Congress should offer Americans a choice between a tax credit and a deduction for health insurance. We need to determine the future role of Medicaid and SCHIP in our system over the long haul. We need to explore better ways to make the market work to hold down the rising costs of health care. And we need to find better ways to make health coverage more affordable and secure. I plan to explore giving States more flexibility to determine health insurance reforms that will help their uninsured citizens access coverage and allow people to choose the type of health insurance that meets their needs. This “patient-driven” approach -- with insurance reforms and changes in the tax treatment of health insurance -- should make health insurance more affordable for everyone. The goal should also be, if people are happy with their current health care coverage, they can keep it.
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.
I want to make clear that my co-sponsorship of the Wyden-Bennett bill is not an endorsement of all that it proposes. Instead, I am co-sponsoring this bill to add my voice to those who are calling for people to work across party lines to find innovative solutions that can work. While I support the “patient-driven” approaches in the bill, I have serious concerns about a number of the provisions of the Healthy Americans Act. For example, like many of the Democratic presidential candidates, this bill 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 envisions a bigger role for government than I would prefer. In addition, I certainly am not endorsing the repeal of the non-interference clause in Medicare Part D. That’s not going to be on the table for me.
So my co-sponsorship is not an endorsement of these elements. Instead, I am co-sponsoring the Healthy Americans Act to add my voice to the bipartisan call for significant changes in our health care system. This is only one step in the process of the public discussion of ideas for improving our health care system. I also intend to work with Senators Burr, Coburn, Martinez, Corker, and Dole on their health care reform proposal. And I intend to work with Chairman Baucus and members of the Senate Finance Committee on small business health reforms. We have serious problems, and we need to solve them. So it’s time to get to work.