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Government Affairs Home > Washington Highlights > October 3, 2003

Rise In Uninsured Renews Coverage Debate

October 3, 2003 - The number of uninsured Americans grew by 2.4 million to 43.6 million in 2002, according to a Sept. 30 U.S. Census Bureau report. The news promptly renewed the debate over how to cover the uninsured.

Senators Charles Grassley (R-Iowa) and Max Baucus (D-Mont.), Chairman and Ranking Member of the Senate Finance Committee, are exploring the possibility of expanding eligibility for the health insurance tax credit enacted in the Trade Act of 2002. Currently the tax credit applies to workers who lost jobs due to trade-related issues. They are discussing an expansion to include all workers receiving unemployment compensation. Fellow Finance Committee member Olympia Snowe (R-Maine) also supported such an expansion but argued that uninsured workers with jobs should have a similar option. Sen. Snowe also suggested SCHIP expansions for certain parents and pregnant women.

Also in response to the report, House Ways and Means Committee Chairman Bill Thomas (R-Calif.) agreed with the Trade Act proposal and also argued that the tax-related provisions in the House-passed Medicare package (H.R. 1) would help uninsured Americans purchase coverage (e.g., expanded MSAs). Ways and Means Minority Ranking Member Charles Rangel (D-N.Y.) strongly disagreed, arguing that only wealthier Americans could afford to fund their healthcare costs via an MSA. Mr. Rangel also criticized the Administration for failing to address the issue of the uninsured. HHS Secretary Tommy Thompson responded that the Administration's HIFA waivers were allowing states to expand their Medicaid and SCHIP programs by restructuring the benefit and eligibility guidelines. Secretary Thompson also argued that the Administration continues to support expanded aid for Community Health Centers and the creation of association health plans.

Information:
Christiane Mitchell, Senior Legislative Analyst
AAMC Government Relations
cmitchell@aamc.org
(202) 828-0526

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