Rep. Bill Lipinski is passionate about advancing measures that make our health care system more accessible, affordable and competitive for small businesses, their workforce and uninsured Americans. He has been a long-time supporter of expanding MSAs, and this year joins Ways and Means Chairman Bill Thomas (R-CA) in cosponsoring “The Medical Savings Account Availability Act of 2001”, H.R. 1524. This legislation allows all consumers to buy an MSA, makes them permanent and repeals “onerous restrictions” that have held back their viability in the marketplace. Congressman Lipinski
has also joined Majority Leader Dick Armey (R-TX) in cosponsoring “Fair Care for the Uninsured Act of 2001”, H.R. 1331 – legislation providing a tax credit for the purchase of health insurance by the uninsured. To Congressman Lipinski, politics should not get in the way of increasing health
care choices, accessibility and affordability for consumers. In our interview, he encourages the small business community to help make MSA expansion and health insurance affordability a bipartisan issue, and is optimistic about the prospects for the two pieces of legislation he has cosponsored to bring health insurance to more of the 43 million Americans who currently go without. Congressman Lipinski represents the 3rd District of Illinois and is a life-long resident of Chicago..
SBSC: You have been a strong advocate for MSAs and their expansion during your congressional career -- what has driven your focus on the issue of health care, and MSAs as one solution, during your congressional career?
Congressman Lipinski: What drives me? The fact that 43 million Americans, and rising, are currently without health insurance. I have long recognized this to be one of the most pressing social issues. As long as six years ago, along with a dozen of my Democratic colleagues, I cosponsored legislation to expand the use of MSAs to curb this growing trend. Considering that 30% of MSA purchasers were previously uninsured, MSAs are a valuable solution to the problem of the uninsured. For that reason, I will continue to advocate making MSAs permanent and available to everyone.
This Congress, I have joined Chairman Thomas in introducing H.R. 1524, The Medical Savings Account Availability Act of 2001.
SBSC: How do you think universal and permanent MSAs will alter the health insurance market, and the delivery of healthcare, in the United States. What makes MSAs such an attractive alternative to middle-class small business owners and their workforce?
Congressman Lipinski: Over 60 percent of those without health care coverage live in a household whose head is a small business owner or employee. Medical Savings Accounts provide these folks with an affordable health care option. These small business employers like MSAs because they give employees incentives to control costs and employees favor MSAs because they can keep funds that they do not spend and they can have greater
control over their health care decisions.
SBSC: Can you tell us how the legislation that you co-sponsored with Ways and Means Chairman Bill Thomas -- Medical Savings Account Availability Act, H.R. 1524 -- will improve MSAs effectiveness in the marketplace?
Congressman Lipinski: The success of MSAs is in spite of restrictions placed on the pilot program, which was part of the bipartisan Kassebaum-Kennedy health care bill that President Clinton signed into law in 1996. As of now, you can only get an MSA if you work for a company with 50
or fewer employees or if you are self-employed. The Medical Savings Account Availability Act would repeal the 750,000 cap on taxpayer participation and make MSAs permanent. The legislation also expands the eligibility of MSAs to all individuals with a qualified high deductible plan.
Repealing the onerous restrictions and making MSAs permanent is key to continuing the success of MSAs. Last year, Congress extended MSAs for two years. Nevertheless, many insurers are reluctant to invest the capital to market MSAs if they will expire soon. Insurers have also been hesitant to
offer MSAs because the cap restrictions limit the size of the market in which MSAs could be offered. Therefore, repealing the cap would encourage the mass marketing of MSAs and increase Americans’ awareness of the benefits of MSAs.
SBSC: Besides the fact that MSAs are an affordable option to traditional insurance, what other features of this product are you most attracted to from a consumer perspective?
Congressman Lipinski: MSAs will cut costs, provide choice, promote healthy lives, and save money for the consumer. These are just some of the reasons I supported the MSA concept when I first heard about it, and why I continue to support MSAs today. MSAs would encourage
consumers to increase their personal savings for health care and give them increased choice over their health care services. By forcing doctors and hospitals to compete for patients who are concerned about quality and cost, health care spending will slow down. MSAs will provide a real incentive to shop
around for the best values and alternatives when non-emergency treatment is needed. The fact that consumers can keep the money that they don’t spend provides this incentive to find low-cost, high-quality providers. MSAs will also reduce the administrative overhead as small bills will be settled and
paid directly between provider and consumer. Furthermore, since MSAs provide an incentive to stay healthy, they also encourage preventative medicine.
SBSC: You have also co-sponsored a bill with Majority Leader Dick Armey that will provide tax credits for the uninsured. How will the tax credit work, and why is it an important component of health care reform?
Congressman Lipinski: While studying ways to lower the number of uninsured Americans, it was brought to my attention that one barrier is the fact that many are uninsured because their employer does not offer health coverage and they lack access to a government health insurance program. That’s
what prompted me to join Leader Armey in introducing H.R. 1331, the Fair Care for the Uninsured Act of 2001, which would create a tax credit for the purchase of private health insurance. The bill creates a fully refundable tax credit of $1,000 for an individual, $2,000 per couple or single mother, or $3,000 for a
family. Not only does the legislation help the uninsured acquire health insurance, but it also allows them to choose the health insurance plan that’s right for them. They are free to purchase a fee-for-service plan, a PPO, HMO, or MSA. I believe that both the Fair Care legislation and the MSA
bill will effectively lower the number of uninsured and give consumers more health care choices.
SBSC: What are the chances that universal MSAs and tax credits for the uninsured will become law this year? Are you optimistic?
Congressman Lipinski: It is very likely that the MSA bill and the fair care legislation will be included in a larger Patients’ Bill of Rights legislation. Unfortunately, I feel that because of other inadequate patient protection provisions in this comprehensive bill, it will have a difficult time passing the House of Representatives. Because of the tight political situation, the legislation may have an even tougher battle ahead in the Senate.
SBSC: What can the small business community do to help your efforts on both of these important health care affordability and accessibility issues?
Congressman Lipinski: The small business community can help our efforts by assisting us in making this a bipartisan issue. We need to stress the issue of increasing health care choices, affordability, and accessibility NOT the politics. After all, when it comes down to it, this
is about the 43 million uninsured Americans.
Reprinted with permission of the Small Business Survival Committee
