U.S. Rep. Pat Tiberi (R-OH) convened a hearing on Tuesday that explored proposals to improve healthcare by changing the way it is treated in the federal tax code.
Tiberi, the chairman of the House Ways and Means Subcommittee on Health, said that members of Congress have put a lot of work into drafting tax-related polices to improve healthcare, and the hearing presented an opportunity to share them.
“In addition to my colleagues from Ways and Means, I am excited to hear from those members who serve on other committees, but who have worked diligently on health-tax bills,” Tiberi said. “We are committed to working through regular order and that includes hearing from all those who are working in this space.”
U.S. Rep. Charles Boustany (R-LA) testified about three health-tax bills that he has authored – the Small Business Healthcare Tax Relief Act, H.R. 2911; the Repeal of the ACA’s Health Insurance Tax Act, H.R. 928; and the Reinvigorating Antibiotics and Diagnostic Innovation (READI) Act, H.R. 3539.
“Today, Americans are struggling to afford the high cost of healthcare that has been made worse by the government mandates imposed through Obamacare,” Boustany said. “As a doctor, I know that limiting access to care will only drive up healthcare costs and worsen our public health. These commonsense proposals will allow for more flexibility and choice in the marketplace, reduce costs for consumers, and ensure the United States remains on the cutting edge of medical innovation.”
U.S. Rep. Martha McSally (R-AZ) testified about her bipartisan bill, the Halt Tax Increases on the Middle Class and Seniors Act, H.R. 3590, that would prevent a tax increase under the Affordable Care Act.
A provision of the healthcare law would make out-of-pocket medical expenses that exceed 10 percent of seniors’ adjusted gross income tax deductible beginning in 2017. Currently, amounts exceeding 7.5 percent are tax deductible.
“Healthcare costs are already high and since 2005 have risen faster than inflation every year except 2008,” McSally said. “Additionally, the trend toward rising health insurance deductibles is leaving people exposed to increasing out-of-pocket costs. We should be working to reduce this burden, not making it worse, but that’s not what a hidden tax hike in the Affordable Care Act would do.”
U.S. Rep. Adrian Smith (R-NE) testified about legislation he introduced to exempt consumers who purchased coverage through a Consumer Operated and Oriented Plan (co-op) that was later terminated from paying ACA individual mandate penalties.
“The premise of my legislation is simple – regardless of one’s opinion of the ACA, the facts remain: consumers were required to purchase health insurance under that law, many chose to purchase insurance through the state and federal health exchanges, and consumers in 13 states who chose co-op plans lost coverage through no fault of their own,” Smith said. “Those consumers who made a good faith effort to comply with the law should not be forced to pay a penalty because the plan they chose ceased operation.”
U.S. Rep. Kristi Noem (R-SD) testified that her Tribal Employment and Jobs Protection Act, H.R. 3080, would shield Native American tribes from the ACA employer mandate.
“Only in Washington – with hastily written legislation like the Affordable Care Act – could you come up with the scenario tribes and their members now find themselves in,” Noem said. “Tribes are being forced to offer coverage, or pay a tax penalty for not providing coverage, to people the federal government is already responsible for caring for. This unnecessarily diverts limited resources that could be used better in other areas. We owe it to tribes to provide them the certainty they need to provide for the general welfare of their members and exempt them from the employer mandate.”
U.S. Rep. Luke Messer (R-IN) discussed his SCHOOL Act, which would exempt schools and educational agencies from ACA’s employer mandate.
“I’ve heard from school leaders across the sixth district of Indiana who say their school systems cannot afford the employer mandate,” Messer said. “One particular superintendent said this portion of the law will cost his school system almost $1 million annually. That means classroom aides will lose their jobs, sports will be cancelled, and access to more up-to-date instructional materials will be diminished. That’s not fair to our students or our teachers. The House has taken action to exempt our nation’s veterans from the employer mandate. Let’s protect our educators as well.”