Bush Health Plan Is Said to Focus on Tax Credits, Levy on Benefits

The Bush Administration is studying tax credits for the uninsured, incentives for more managed medical care and a possible tax on employer-paid health insurance, according to published reports.

The New York Times reported in today’s editions that White House Chief of Staff Samuel K. Skinner told doctors this week that the Bush plan likely will include incentives for people to enroll in prepaid group health plans that reduce medical costs. The proposal also would place limits on medical malpractice lawsuits.

The Washington Post reported today that the White House had not finalized its plans but was studying a package, which one source called the leading option, that would shift more health care costs to the well-to-do.

Both newspapers, quoting sources they did not name, said a refundable tax credit for Americans who paid their own health insurance premiums was a cornerstone of the options being narrowed down by the Administration to aid the nation’s ailing health care system.

President Bush is expected to use his State of the Union address Jan. 28 to unveil his prescription for controlling skyrocketing medical costs and extending insurance to 34 million Americans who currently lack it.

The New York Times said it talked with Administration sources, as well as with members of the American Medical Assn. who met Tuesday with Skinner. Both indicated Bush’s top options likely would be tax credits for the uninsured and incentives to encourage more enrollment in managed health care programs.

The paper also quoted Administration officials as saying the President wanted to control medical malpractice claims.

The Post reported one funding plan under consideration would increase Medicare premiums and tax the employer-paid health benefits of those with incomes over $100,000.