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Wednesday, May 12, 2004

AMA proposes tax credits for the uninsured

[E.J. Mundell, "AMA Seeks Tax Credits for Uninsured," Forbes, 11 May 2004.]

Tax credits as a means for alleviating the problem of the uninsured in the U.S. are gaining steam. The American Medical Association suggests that they may be the answer to the problem:

Most of America's 43 million uninsured could finally gain full medical coverage if Washington offered them tax credits specifically earmarked for health insurance, say top officials at the American Medical Association.

The AMA, the largest organization representing the nation's doctors, advocates abolishing the current tax exclusion for employer health benefits and replacing it with tax credit vouchers that the working poor could use to purchase individual insurance packages.

"The AMA proposal allows people to select their own insurance. It allows them a mechanism so they can afford the insurance with the refundable tax credit," said AMA President Dr. Donald J. Palmisano. "It puts people in control of their own destiny."

The health-care funding proposal, written by Palmisano along with two experts at the AMA's Center for Health Policy Research, appears in the May 12 issue of the Journal of the American Medical Association.


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