2004 Budget

FOR IMMEDIATE RELEASE Contact: Kelly Loussedes, Director of Public Relations

February 4, 2003 (703) 276-3835 or kloussedes@nahu.org or

Janet Trautwein, Vice President of Government Affairs

President Bush's Budget Blueprint Expands Access to Health Care

(Arlington, VA) The National Association of Health Underwriters (NAHU) commends President Bush for including in his fiscal year 2004 budget provisions to help more Americans obtain affordable health care. The recently released budget contains proposed funding for health tax credits, incentives to purchase long-term care, MSA and FSA expansion and Medicare reform.

"We are pleased that President Bush again included in his budget refundable health tax credits to make private health insurance more affordable for Americans who do not have employer-sponsored health insurance, said Janet Trautwein, vice president of government affairs. "We believe this proposal is an important first step, and are hopeful that it can be extended to other low-income Americans who can't afford health insurance premiums, including those who can't afford to pay their share of premiums through their employer's plan.

"The president's budget blueprint for 2004 also calls for an above-the-line deduction for long-term care insurance premiums and an additional tax exemption for caregivers. Incentives to encourage people to plan privately for long-term care expenses will ensure that consumers have choices for their long-term care needs, as well as give states and the federal government some reprieve from rising Medicaid costs, a good portion of which can be attributed to long-term care. We are also pleased that the president acknowledged the important role caregivers already play in providing long-term care by providing some financial assistance to help with the cost of that care. We would also like to see additional incentives for private planning by making long-term care insurance available through Section 125 cafeteria plans, and by allowing full development of state long-term care partnership programs.

"We also support the provisions in the budget to permanently extend medical savings accounts (MSAs) and institute measures to loosen restrictions on their use as well as relaxing the use-it-or-lose it rule for funds in flexible spending accounts (FSAs). Enhancing MSAs and FSAs will give consumers more choice and control over their health care purchasing decisions.

"We agree with President Bush that any type of Medicare reform should guarantee access to affordable prescription drugs for all beneficiaries and utilize private-sector mechanisms to manage costs and deliver a high quality benefit. The overwhelming bipartisan support for a prescription drug benefit for seniors gives us a real opportunity to improve Medicare. Seniors need prescription drug benefits, but adding them without addressing the underlying program will only exacerbate Medicare’s financial problems."

The National Association of Health Underwriters represents more than 17,000 professional health insurance professionals who provide insurance for millions of Americans. NAHU is headquartered in Arlington, VA. For more information, please call Kelly Loussedes at 703-276-3835 or email kloussedes@nahu.org or visit our web site at www.nahu.org.