Ehrlich on Washington column, June 16, 1996

MEWS FROM Robert L. Ehrlich, Jr. Second Congressional District of Maryland 1407 York Road, Suite 304 Lutherville, Maryland 2 1 093 EHRLICH ON WASHINGTON By Congressman Robert L. Ehrlich, Jr. 3 1 5 Cannon House Office Building Washington, D.C. 205 1 5 Week of June 16,1996 MAKING HEALTH CARE REFORM A REALITY Recently the House and Senate passed long-awaited health care reform legislation. The strong bipartisan support these bills received reflects Congress’ desire to address the serious problems faced by working people in acquiring and keeping their health insurance coverage. Both the House and Senate bills address the problems facing health insurance coverage in several ways: by ensuring the portability of coverage for previously covered individuals; limiting preexisting condition exclusions; and prohibiting exclusions based on health status. The most important provisions make health insurance available to more workers by allowing employers, particularly small businesses, to form groups for insurance purposes, thereby expanding health coverage and reducing costs. These bills differ in several critical areas. Ultimately, the choices made by House-Senate conferees will determine the effectiveness of this legislation in achieving meaningful health care reform. First, while the House bill includes a provision for Medical Savings Accounts (MSAs), the Senate bill does not. The House bill allows taxpayers to make tax-deductible contributions to MSAs and withdraw these amounts tax- and penalty-free for specified medical purposes. MSAs are a major component of effective health care reform. They will allow American workers to regain control over their own choices, giving them the incentive to act on their own to restrain