Missourians Can Deduct 100% of Their Long-Term Care Insurance

Governor Matt Blunt recently signed into law legislation allowing Missourians to deduct 100 percent of the cost of their long-term care insurance. Previously Missourians were only able to deduct 50 percent of the cost. They believe this action will not only allow Missourians to keep more of their hard-earned money, it will encourage more people to plan for their future. To learn more go to www.longtermcare.gov/campaign or call 1-866-752-6582

Blunt Expands Access to Health Care Coverage for Missourians

JEFFERSON CITY – Legislation enacting Gov. Matt Blunt’s strategy to help reduce the number of Missourians without insurance goes into effect today. Blunt signed the new law that expands health coverage for Missourians and includes a tax relief measure to help lower the cost of health insurance for families. Read full article

Medicare Rationing

Government-imposed denial of life-saving medical treatment is a form of involuntary euthanasia. Because Medicare is mandatory health insurance for older Americans, the government must not limit the ability of senior citizens to use their own money, if they wish, to get unrationed insurance for life-saving medical treatment under Medicare.

LEGISLATIVE UPDATE AND ACTION ALERT OVER 2007 AUGUST RECESS

Before beginning the Congressional August recess, both the Senate and the House voted on different versions of reauthorization and expansion of a children's health program known by the acronym SCHIP. The Senate bill's expansion was financed by an increase in the tobacco tax and did not involve any changes to Medicare. The House bill, however, financed the expansion in part by extensive cuts to the part of the Medicare program that allows senior citizens to choose among private plans, currently known as "Medicare Advantage." Beyond these cuts, the House bill, adopted by a vote of 225 to 204, contained provisions that effectively end the private fee-for-service alternative that now gives older Americans the legal right to add their own money, if they choose, on top of the government contribution in order to obtain health insurance less likely to ration life-saving treatment (see below.) President Bush has threatened a veto of both versions.

The House and Senate versions now go to a conference committee containing both Senators and House Members. It is critically important that the House provisions attacking the private fee-for-service option be dropped by the conference committee.

One possibility, publicly suggested by Senate Finance Committee Chairman Max Baucus (D-Mont.), is that the Medicare-related provisions might be dropped from the SCHIP re-authorization and then considered in a separate bill focusing on "Medicare reform." Should such a bill emerge, it will be vital to prevent it being used to eliminate the choice of avoiding rationing through the ability to add one's own money.

ACTION NEEDED:

URGENT! Please contact your U.S. Representative and both your U.S. Senators with this basic message: Urge the SCHIP conference to drop the House attacks on the Medicare private-fee-for-service option.

In order to protect senior citizens' lives, we must ensure their right to get unrationed medical care under Medicare. We must not prohibit older Americans from adding their own money, if they wish, to get unrationed insurance – which only the private fee-for-service alternative gives them.

Note: The specific provisions are identified and explained in the NRLC Analysis of the House CHAMP Act. –Because of post-9-11 security screening requirements, postal mail, to be effective, is best sent to the LOCAL instead of the Washington office, which you may locate in your local phone book or by going to http://[insert senator's last name].senate.gov and http://www.house.gov/house/MemberWWW.shtml

–You can send an e-mail by going to www.nrlc.org, clicking on Legislative Action Center, clicking on the Medicare link in the left column, and following the links to take action; and/or

–You can call your Representative's and Senators' state offices (see local phone book) or go through the Capitol Switchboard: 202-224-3121 (Senate) or 202-225-3121 (House).

NRLC Analysis of House CHAMP Act

NRLC Letter to Members of U.S. House of Representatives on CHAMP Act -- July 31, 2007

NRLC Letter to U.S. Senators on SCHIP -- July 30, 2007

New HSA Legislature Allows Increased Contributions

We recently received some terrific news regarding HSA legislation! As some of you may be aware, President Bush signed a bill on December 20, 2006, that will allow individuals to contribute more to their HSA accounts. The following summary of the relevant changes that go into effect on January 1st, 2007:

• Individuals may contribute the maximum amount as determined by the IRS even if the individual's deductible is less. The maximum for 2007 is $2,850 for individuals and $5,650 for families.
• Employees may contribute the maximum annual amount set by the IRS regardless of when their plan coverage began, rather than being prorated. Example: if a family's HDHP coverage begins in December, they may still contribute$5,650 for that year rather than $470.83 (1/12 of $5,650).
• The annual contribution limits set by the IRS for the following year will be released on June 1st rather than in November or December.
• Employers may roll funds from employee HRAs or FSAs into an HSA on a one-time-only basis, provided that:
  • The employer rolls over the lesser of the HRA or FSA balance on the date of transfer or September 21, 2006.
  • Transfers occur before January 1, 2012.
  • The individual maintains an HDHP for at least 12 months following the transfer. If not, the transferred amount is subject to income tax and a 10% excise tax.
  • If employers allow the FSA extension where FSA funds can be used until March 15 of the following year, employees may still contribute to an HSA if their FSA balance is zero or the FSA balance is transferred to an HSA by January 1st.
  • Individuals may transfer money from their IRAs to their HSAs once.
  • As an exception to the comparability rule, employers may contribute more to HSAs for employees who earn less.