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For Immediate Release:
01/23/2007
For More Information:
Michael Russo
(213) 251-3680 x332

While California Moves Forward, Bush Pushes Back on Health Care

While California Moves Forward, Bush Pushes Back on Health Care
Statement of CALPIRG Health Care Advocate Emily Clayton on President Bush’s planned health care proposals for the State of the Union

“Just as California and other states are preparing to take big steps forward on the path to better regulating the health insurance industry and expanding health care coverage, President Bush is set to propose some giant steps back in his State of the Union address tonight.

“Instead of tackling skyrocketing costs, poor behavior from the health care industry’s powerful interests or the ever increasing number of the uninsured, President Bush is planning to propose yet more tax breaks that disproportionately favor the highest income tax brackets while encouraging the expansion of low quality health care plans. California leaders should ignore these flawed ideas from the Bush Administration and move forward with a comprehensive and fair solution to rising health care costs and diminishing quality.

“As he has for the past several years, President Bush is pressing for more tax breaks for Health Savings Accounts. These tax-free accounts, as recently demonstrated in a report from the Government Accountability Office, are disproportionately used by the wealthiest Americans and are increasingly being used as tax shelters rather than accounts for actual health care spending. California has already rightly rejected favorable tax treatment for these shelters.

“The president’s proposal to tax other health care benefits is another move away from comprehensive health care plans toward lower quality products. While doing nothing to rein in the cost of health care, the president’s plan penalizes workers of all income levels whose employers provide them with generous health benefits. Our elected officials should be pushing to contain health care costs rather than discouraging employers from providing quality health care plans.

“America’s health care system is broken. President Bush cannot simply tax-break his way out of this problem. The president and Congress should work together to lower the cost of health care, take on health care’s powerful special interests and expand health care coverage.

“Governor Schwarzenegger and California’s legislative leaders should reject the bad ideas coming from the White House and keep working together to create real health care reform that reins in the insurance industry, lowers prices and expands coverage.”

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