Tax Credits Benefit Americans, Preserve Choice -- Other Options Do Not
MILWAUKEE, Feb. 1 /PRNewswire/ -- Fortis Health's leadership and support
of tax credits' legislation persists as company executives continue to meet
with key White House and Congressional leadership in the coming weeks. As the
only health insurance board member of the Council for Affordable Health
Coverage (CAHC), Fortis Health will meet with the primary Congressional
committees regarding the provision of tax credits for the purchase of private
health insurance coverage.
Tax credits: equal benefit to all
Health insurance assistance for displaced workers has become a hotly
contested issue. The issue held up passage of the economic stimulus before
the holidays, with debate set to resume as the 107th Congress moves into its
second session. Fortis Health, along with the Bush administration and fellow
CAHC members, supports tax incentives for the purchase of individual health
insurance coverage. Under the currently proposed legislation, those who lost
health insurance coverage due to the September 11 terrorist attacks or because
of the economic slowdown would receive a tax credit to pay for a percentage of
their health care insurance costs. Members of the White House continue to
work with the CAHC to craft an efficient, workable model to implement tax
credits for health insurance.
"Fortis Health is assuming a leadership role on behalf of the consumer, to
influence federal tax and health insurance policy," said Ben Cutler, Fortis
Health president and CEO. "We believe that the key to providing real
assistance to those who need it is in the plan design. Tax credits would
treat everyone equally and allow individuals to choose their own coverage.
The opposing plan of expanded welfare programs takes choice out of the
equation." Cutler notes that tax credits will give Americans the choice to
select the coverage that best fits their needs.
The opposition: expand welfare programs
Opponents of tax equity legislation support the expansion of current
government-assisted programs, such as Medicare, SCHIP (State Comprehensive
Health Insurance Plans) and COBRA (by federal law, the expensive health
insurance continuation coverage that employers offering group health insurance
must offer) for recently displaced workers.
Cutler points out that under the "expanded welfare" plan, many people --
such as the self-employed or small business owners and employees -- would not
be eligible for COBRA. In addition, Fortis Health's statistics show that only
one in five people eligible for costly COBRA select the coverage. The
alternative would be Medicaid or another government assistance program. "Many
won't accept such assistance and may elect instead to join the ranks of the
uninsured," says Cutler. "Americans deserve the right to choose their own
health insurance coverage."
Bipartisan support for tax credits gaining momentum
The Bush administration has supported tax credits since stimulus package
negotiations began, with the issue now taking an even higher priority for the
President, as mentioned in his State of the Union address on January 29.
Treasury Secretary Paul O'Neill recently expressed his support of tax credits
during NBC's 'Meet the Press,' noting that the opposition's plan would not be
equitable for all Americans (due to complex matters relating to employment
circumstances). He noted, "Everyone who is dislocated should get the same
access to money to help with their health insurance." In addition, Sen. John
Breaux, D-La., has acknowledged tax credits for private health insurance
coverage as the most effective means to increase affordability.
About Fortis Health
Fortis Health is committed to helping Americans meet their health
insurance needs. In business since 1892, the company is a leader in the
Individual Medical, Small Group, Short-Term and Student Health insurance
markets. Fortis Health provides coverage for more than one million people
nationwide. Its products are underwritten and issued by Fortis Insurance
Company, John Alden Life Insurance Company and Fortis Benefits Insurance
Company. Fortis Health is headquartered in Milwaukee, Wis., and has
operations offices in Minnesota, Florida, Idaho and Ohio.
Fortis Health is part of Fortis, Inc., a financial services company that,
through its operating companies and affiliates, has built leadership positions
in a number of specialty insurance market segments. Fortis, Inc. is part of
Fortis, a financial services provider active in the fields of insurance,
banking and investment. As of second quarter, 2001, Fortis had total assets
in excess of $400 billion. Fortis ranks 31st based on assets and 73rd based
on revenues on the Fortune 'Global 500' and 42nd based on revenues on the
Forbes 'International 500' list (July 23, 2001).
Members of the media interested in more information may contact Michelle
Love-Johnson at 262-523-3740 or michelle@seroka.com. Fortis Health can be
found on the Internet at http://www.fortishealth.com
SOURCE Fortis Health
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Related links:
http://www.fortishealth.com
CONTACT:
Michelle Love-Johnson, +1-262-523-3740,
michelle@seroka.com , for Fortis Health
NOTE TO EDITORS: Interviews available upon request with Fortis
Health executives.
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