Bill Introduced To Provide Tax Credits To Help Purchase Health Insurance

Sens. Rick Santorum (R-Pa.) and Jim DeMint (R-S.C.) have introduced a bill (S 978) that would provide refundable tax credits to help individuals and small businesses purchase traditional health insurance or coverage through high-deductible health plans with health savings accounts, CQ HealthBeat reports. The legislation would eliminate "the unfair tax bias" against individuals who purchase health insurance, according to a release from bill sponsors. The legislation also would provide tax credits to small businesses that contribute funds to employee HSAs and an "above-the-line deduction" for high-deductible health plans, CQ HealthBeat reports.

Rep. Paul Ryan (R-Wis.), a co-sponsor of a similar bill (HR 1872) introduced in the House, in the release said, "With this legislation, we are helping those who currently fall through the cracks: those who aren't covered through their employer, the self-employed, low-income people and small businesses that have difficulty affording coverage" (CQ HealthBeat, 5/16).