Friday, June 1, 2007
Contact: Jessica Robinson, 573-751-0290
Blunt Expands Health Care Coverage for Missourians
Legislation Provides Tax Relief for Missourians to Help Reduce Health Care CostsKEARNEY–Gov. Matt Blunt today signed legislation to expand health coverage for Missourians that includes a tax relief measure designed to help lower the cost of health insurance for families. House Bill 818 implements important provisions to help reduce the number of Missourians without insurance.
"This is a powerful bill that will enable more Missourians to access health insurance coverage," Gov. Blunt said. "More than 5 million Missourians have health insurance, but 700,000 are yet to be covered. This bill is a good step towards expanding access to care for Missourians currently without insurance. I am also very pleased we provided tax relief in the legislation by allowing Missourians to deduct the cost of their health insurance premiums."
House Bill 818, sponsored by Rep. Doug Ervin, works towards building a comprehensive program to expand access to quality health insurance and reduce the number of Missourians who lack coverage.
"I thank Governor Blunt for encouraging all stakeholders to come together and find a solution that will provide more Missourians access to affordable health insurance," said Rep. Doug Ervin. "This bill reorients our state's health care policy toward the objectives of the individual and away from the employer, the insurer, providers, and government through portability and equitable tax treatment among all consumers of health care goods and services putting the consumer back in the driver's seat to make their own health care decisions."
Provisions in the bill:
- Expand opportunities for Missourians who are defined as, "high risk", allowing them to more easily purchase health care coverage
- Provide a tax deduction for all Missourians for health insurance premiums included in their federally adjusted gross income
- Extend opportunities for coverage for young Missourians entering the workforce by expanding dependent coverage to the age of 26
- Self employed taxpayers may qualify for a tax credit
- Provide a tax-free option for employees to pay insurance premiums through cafeteria plans
- Allow employers to make a defined contribution towards the purchase of health insurance
The bill will make it easier for Missouri's workers and families to purchase health insurance through the opportunity for small employers to make a defined contribution to their employees to purchase insurance. The contribution would be tax deductible and could help families offset the cost of purchasing insurance.
The bill cuts taxes by allowing Missourians to deduct costs for health insurance premiums from their adjusted gross income even if they did not meet the minimum threshold to qualify for the federal deduction.
The legislation also ensures that self employed Missourians will receive a tax credit for federal taxes paid on insurance premiums.