800,000 Hoosiers have no coverage

INDIANAPOLIS — Indiana House Republicans offered three proposals yesterday that aim to reduce the number of Hoosiers without health insurance.

But they acknowledged the ideas fall short of the kind of comprehensive plan that could significantly improve the situation.

About 800,000 people in Indiana have no health insurance -- about 13.5 percent of the state population. And lawmakers from both parties say they are interested in reducing the number.

House Speaker Brian Bosma, R-Indianapolis, said the problem "is one of the most complicated" the General Assembly will deal with. He said the GOP caucus program "isn't the solution" but is simply a starting point for discussion.

"I'm not sure anyone has come up with a comprehensive solution that is ideal," he said.

The Indiana Family and Social Services Administration has held a series of public meetings about the problem, and Gov. Mitch Daniels is expected to offer his own plan before the 2007 session.

Bosma said his caucus isn't deferring to the governor but added that the solution will come from the administration and lawmakers working together.

Yesterday Republicans proposed to:

Create a pilot program that will allow up to 100 smaller employers (with 500 or fewer workers) to receive a tax credit for money spent on promoting health and wellness. The credit could reduce state revenue by $300,000 to $1.2 million annually, Republicans said.

Establish an income-tax deduction for Hoosiers who buy independent health insurance, rather than through a group plan, such as an employee plan. Republicans said yesterday that about 5 percent of Hoosiers purchase their own policies. It would cost up to $4.7 million a year.

Allow parents to use their own health insurance policies to cover their children up to 24 years old -- if the insurance company will write the policy. Currently, Indiana law allows only children up to age 19 to be covered on their parents' individual policy.

Democrats yesterday dismissed the Republican proposals.

"We do not need to be approaching this issue on a piecemeal basis or by creating pilot programs that are simply favorable for businesses," Minority Leader Pat Bauer, D-South Bend, said in a statement. "That is an insult to the people who don't have health insurance or find themselves paying too much for it."

Bauer has been saying for weeks that Democrats will push for "universal health care," a term that has been largely undefined.

Yesterday he said that "House Democrats will seek affordable health care for everyone and ensure that health-care decisions will be placed in the hands of patients and their doctors, rather than the bean counters at some insurance company."

But Democrats, who hope to win a majority in the House on Nov. 7, have not proposed a plan to accomplish that. In August Rep. David Orentlicher, D-Indianapolis, said he would pursue a plan that is based on the federal Veterans Affairs health-care system.

His plan would include a pilot program that allowed businesses to join in a pool to purchase health care for employees.

Bosma said yesterday that Republicans would consider plans to create insurance pools for small businesses. But he said they fear Democrats simply want to create a state-sponsored, tax-funded health-care system.

"That is a recipe for fiscal and taxpayer disaster," Bosma said. "What we're pledging today is that we will look for market-based solutions that include incentives for employers and include incentives for individuals to get themselves covered."

Republicans also offered a number of job-creation-related proposals yesterday. They include:

Making the Hoosier Business Investment Tax Credit permanent. The credit, awarded by the Indiana Economic Development Commission, is worth up to 10 percent of a company's new investment. It is set to expire in 2011.

Renewing the Venture Capital Tax Credit, which is available to individuals or businesses that provide equity capital or an unsecured loan to qualified high-tech businesses. It is set to expire in 2008, and the GOP wants to extend it to 2013.

Create a 10-year tax exemption for income derived from new patents. The credit would be available to companies with 500 or fewer employees and only for the first $5 million per year in patent-related income.

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By Lesley Stedman Weidenbener
lstedman@courier-journal.com
The Courier-Journal

Reporter Lesley Stedman Weidenbener can be reached at (317) 444-2780.

Copyright 2005 The Courier-Journal.