• As House Focuses on Health Care, NASE Calls for Reform
• John Roberts, Likely to be the Next Supreme Court Justice
• Association Health Plans Get Nod from the House

As House Focuses on Health Care, NASE Calls for Reform

The NASE supports important changes to the current health care system as the U.S. House of Representatives sets aside this week to work on health care legislation. Elimination of the self-employment tax on health insurance premiums, implementation of association health plans, expansion of health savings accounts, and health care tax credits would benefit the nation’s self-employed and micro-businesses as they struggle with health coverage costs. “Micro-business owners and the self-employed have a particularly difficult time managing health care costs in this country.” said Kristie Darien, Executive Director of the NASE legislative office. “As an important segment of the country’s economy, we hope that Congress will consider the needs of micro-business owners during this health care crisis.” The NASE favors the following changes to the current health care system: Elimination of the Self-Employment Tax on Health Insurance Premiums Under current law, the self-employed cannot consider health insurance deductions as ordinary and necessary business expenses, while corporations can. The self-employed must pay self-employment (FICA) taxes on the amount of the health insurance premium at a rate of 15.3%. The NASE demands that this inequity face by the self-employed be corrected. Association Health Plans Association health plans (AHPs) would assist the self-employed and micro-business owners in receiving cost effective and comprehensive health care coverage by allowing them to purchase health insurance in large pools. AHPs would enable bona fide trade associations to design health plans exempt from state mandates for all members. Micro-business owners and their employees could access health insurance plans offered through these trade associations regardless of their state of residence, much like the identical plans large employers offer its employees in multiple states. Expansion of Health Savings Accounts Heath savings accounts (HSAs) are used in conjunction with high-deductible insurance policies. Instead of paying a high monthly premium for insurance, a low premium, high-deductible health plan is purchased. The HSA then acts as an investment account from which people can withdraw money tax-free for medical care. The money accumulates tax-free interest until retirement, when it can be withdrawn for any purpose. Health savings accounts provide an alternative to the ever-rising cost of health insurance premiums for micro-business owners. Health Care Tax Credits Health care tax credits would assist the self-employed and micro-businesses in purchasing health insurance. They would also assist individuals employed in businesses that do not offer employer-sponsored health plans to access health insurance. Specifically, the NASE supports a tax credit that is refundable which would allow lower income workers who do not owe income taxes to receive the full value of the tax credit. “The NASE has made health care reform a top priority during this Congress and will continue to fight for the rights of our nation’s self-employed,” said Darien. The NASE supports many bills currently in Congress including the Small Business Health Fairness Act of 2005 (H.R.525/S.406), Healthcare Tax Relief for the Uninsured Act of 2005 (H.R.1872/S.978), Equity for Our Nation’s Self-Employed Act (S.668), and Health Technology to Enhance Quality Act of 2005 (S.1262). For more information on the NASE’s position on health care, visit http://advocacy.nase.org/. Tell your legislators to support these important health care issues by visiting the online NASE Legislative Action Center at http://advocacy.NASE.org.

John Roberts, Likely to be the Next Supreme Court Justice

John Roberts Last week President George W. Bush announced his choice to fill the Supreme Court Associate Justice position, which is opening up with the resignation of Sandra Day O’Connor. There was much speculation that Bush would choose another female to replace O’Connor. Instead he chose Roberts, a conservative judge with a limited judicial record. This is because Roberts has only served as judge since 2003. Roberts was a clerk for Chief Justice William Rehnquist while Rehnquist was still an associate justice and worked in the Ronald Reagan and George H.W. Bush administrations. Most recently, he was appointed to serve on the U.S. Court of Appeals for the D.C. Circuit. He was confirmed for that position by a unanimous voice vote in the Senate. Additionally, both in private practice and as principal deputy U.S. solicitor general under George H.W. Bush, he has argued 39 cases before the Supreme Court. “John Roberts has devoted his entire professional life to the cause of justice and is widely admired for his intellect, his sound judgment and his personal decency,” Bush said. “He is a man of extraordinary accomplishment and ability. He has a good heart. He has the qualities Americans expect in a judge: experience, wisdom, fairness and civility.” It is unlikely Roberts will face a filibuster by Senate Democrats, and instead is expected to receive a straight up or down vote by the entire Senate. In May, seven Republican and seven Democratic senators united to stop a controversial vote to ban judicial nominee filibusters, which was called the “nuclear option.” They produced a statement laying out a compromise that would involve preventing filibusters except under “extraordinary circumstances” and would defeat any effort to ban filibusters completely during the 109th Congress. Members of the gang of 14, as they are called, have said that barring unforeseeable issues, it seems unlikely there will be “extraordinary circumstances” in which Democrats would filibuster Roberts. While some liberal groups have launched campaigns against Roberts, he has met with many Democratic senators and gained cautious approval from senators on both side of the aisle. Hearings could be held as early as August although much of the Senate Judiciary Committee leadership is looking to hold the hearings in early September. Bush has called for a new justice to begin with the next Supreme Court term in October. Want to chime in to your legislators on Roberts as a nominee? Visit the online NASE Legislative Action Center at http://advocacy.NASE.org.

Association Health Plans Get Nod from the House

Just before this week’s Washington Watch went to press, H.R. 525, the Small Business Health Fairness Act, passed with bipartisan support in the House of Representatives. The bill, sponsored by Representative Sam Johnson (R-TX), would allow small businesses to band together through associations to purchase health care at a lower cost. For more information on H.R. 525, check out next week’s Washington Watch.