Advocacy for Health Insurance Affordability

The following is a statement issued to Alliance Members from Senator Mel Martinez, FL. On January 4, 2005, he became Florida’s thirty-third United States Senator and the first Cuban-American to serve in the U.S. Senate. A co-writer of the Hagel-Martinez compromise, a realistic solution to the immigration challenges facing our country, Martinez views the work he does as the culmination of his American Dream.

Far too many people in America today are currently without health insurance. One of the conditions exacerbating the problem – a problem affecting millions of American workers and their families every day – is the federal tax code’s imbalanced treatment of those who purchase health insurance.

Under the current system, those who work for a large employer get a tax benefit to purchase a health plan; those who purchase health insurance on their own do not.

Among those most affected by this situation are entrepreneurs and the owners and employees of small businesses – two sectors of our economy most responsible for driving the American economy into prosperity.

The unbalanced tax treatment is wrong and Congress should address this problem now. Ultimately, it’s a question of fairness. A tax break for health insurance should not be applied depending on where you work; tax policy should apply to all seeking quality health care coverage.

The solution relies on streamlining the tax code, so that regardless of your place of work—whether that’s in corporate America or at the neighborhood bakery—American workers have the same opportunity for equal and affordable health care coverage.

Earlier this year, I introduced a bill called the Tax Equity and Affordability or “TEA” Act. The bill’s aim is to remove the current inequity and level the field making tax benefits for health insurance available to all.

My bill will widen the availability of affordable and portable health care plans and remove some of the pressure that leads to higher health care costs.

This bill would allow workers who purchase insurance on their own to do so with pre-tax dollars.

Taxpayers who do not have access to employer-provided plans would be allowed access to a health tax credit equal to the benefits enjoyed by workers whose employers provide health insurance.

Understanding that those in lower income brackets might still struggle to come up with the funds to take advantage of this new tax benefit, the bill aims to increase the tax credit to those families and individuals. With a credit in place, money would be immediately available to make coverage more affordable for more families.

I believe we need to drastically cut the number of uninsured people in our country. This legislation would help to provide more benefits to more workers across America, regardless of their employment situation.

The greatest barrier between the uninsured and health care coverage is the prohibitive cost. Congress needs to take steps now toward helping millions more American workers and their families afford the coverage they need.

The debate over health care is coming back to Capitol Hill soon. As it does, I will encourage all of my colleagues to suggest solutions and find innovative and fiscally responsible ways to tackle the problem of the uninsured. Americans must have an effective way to access the type of care coverage they are looking for at a price they are willing and able to pay.