Bush, Democrats team up on healthcare

WASHINGTON -- Hoping to gain support for his health care proposal, President Bush pledged yesterday to reach across party lines to reform the nation's medical insurance system so more of the 46 million uninsured Americans can afford coverage.

"From my conversations with Democrats and Republicans, it is clear both parties recognize that strengthening health care for all Americans is one of our most important responsibilities," Bush said in his weekly radio address.

"I am confident that if we put politics aside, we can find practical ways to improve our private health care system." he said.

On Tuesday, five Republicans and five Democrats told Bush that they have agreed on a blueprint for increasing health insurance coverage and want to work with him on it. The White House took the lawmakers up on their offer.

Bush has proposed a major shift in tax policy that would, for the first time, treat health insurance costs as taxable income.

"Today, the tax code unfairly penalizes people who do not get health insurance through their job," said Bush, who will visit a hospital in Chattanooga, Tenn., and will meet with healthcare specialists at the White House next week.

"If you buy health insurance on your own, you pay much more after taxes than if you get it through your job," he said. "I proposed to end this unfair bias in the tax code by creating a standard tax deduction for every American who has health insurance, whether they get it through their job or on their own."

Bush wants a tax deduction of $7,500 for individuals and $15,000 for families regardless of whether they buy their own health insurance or receive medical coverage at work.

If passed by Congress, the proposal would be the first time that workers could get a tax break for medical insurance costs. But it also would be the first time that some employer-provided health care benefits would be taxed. Health care benefits provided by companies are currently exempt from income and payroll taxes.

"Americans deserve a level playing field," Bush said. "If you're self-employed, a farmer, a rancher, or an employee at a small business who buys health insurance on your own, you should get the same tax advantage as those who get their health insurance through their job at a big business."

The administration says 20 percent of those with employer-provided health insurance would see a tax increase -- if they don't switch to less expensive plans. Some Democratic leaders have predicted little chance of major healthcare legislation passing before the next election and say the president's plan would lead to employers deciding to cut coverage .