Forty-three million Americans are uninsured involuntarily. Those who have insurance are often frustrated by a lack of choice, control, portability, and affordability, leading to pressures for government mandates and bureaucracy. The source of these problems lies in the tax code. There is a hidden health penalty tax that effectively punishes people who try to buy their insurance outside the workplace. To solve these problems, the Fair Care for the Uninsured Act of 2001 creates tax fairness.
Individuals are free to choose their own benefits and cost-sharing features.
The credit can be used with a Medical Savings Account. The bill contains no tax increases or spending cuts. The bill also permits bona fide membership associations to offer economical insurance policies to their members free of costly state benefits mandates. The purpose of this provision is to give an extra measure of reassurance to workers that their employers won't stop offering health benefits simply because of the enactment of this tax credit.