Santorum Fair Care Measure Awaits Action

Published January 1, 2004

With attention focused on Medicare reform and prescription drug benefits for seniors and the disabled, legislation that would directly benefit the nation’s uninsured was left unaddressed before the year-end break.

The Fair Care for the Uninsured Act of 2003, introduced to the Senate in August 2003 by Senator Rick Santorum (R-Pennsylvania), would provide a refundable tax credit that the uninsured, under 65 population could use to buy health insurance. The bill, which currently has six cosponsors, is pending in the Senate Finance Committee.

The Fair Care legislation provides tax credits of $1,000 for an individual, $2,000 for a couple, and an additional $500 per child, up to $3,000 per family. Eligibility for the credits is limited to persons who do not receive subsidized health benefits through their employer or government health plans.

“Simply put, most people are uninsured because they don’t have the money to buy health insurance,” explained Dr. Merrill Matthews, director of the Council for Affordable Health Insurance (CAHI). “Legislation like this helps them afford the insurance plan that is best suited for them. It’s far more efficient and practical to let them get what they want, rather than letting the government tell them what they need,” said Matthews.

A Santorum aide told Health Care News the legislation has an estimated $15 billion annual price tag–significantly less than the $35 billion a year currently paid to hospitals to reimburse them for medical care they provide to the uninsured. The aide also noted, “Starting this year, self-employed individuals can take a 100 percent tax deduction of health insurance premiums. Fair Care just levels the playing field for the uninsured, who get no tax breaks.”

The Santorum measure also would help to reduce health insurance premiums by permitting the creation of Individual Membership Associations, through which individuals could obtain basic health coverage free of costly state benefit mandates.

In October 2003, the U.S. Census Bureau reported 43.6 million people in the U.S. were uninsured in 2002, an increase of 2.4 million over 2001 figures. “The numbers just prove that uninsured Americans need help to cover their health insurance costs,” CAHI’s Matthews noted. “Fortunately, Congress can do something to help them–it can pass the Fair Care for the Uninsured Act.”


Conrad F. Meier is managing editor of Health Care News. His email address is [email protected].