Health Insurance Reform Moves A Step Closer

Pushed by Senator Bob Dole, who had hoped to have one last success before his resignation from the US Congress, Republicans reached a compromize among themselves on a health insurance bill which would make tax-deferred medical savings accounts available to an estimated 40 million people who work for small businesses (ie, those with 50 or fewer employees), or who are self-employed.

Sen Dole had said he hoped the Democrats could agree to the plan so that the bill could be on President Clinton's desk by the end of the week. The measure would help individuals keep insurance if they changed jobs or had pre-existing illnesses, and would also offer higher tax deductibility for insurance costs to the self-employed.

Both Congressional Democrats and the White House have opposed MSAs, which let individuals shelter income from taxes to pay routine medical bills and accumulate money left over at the end of the year. Democrat Senator Edward Kennedy, who wrote the original bill with Republican Senator Nancy Kassebaum, called the deal a travesty. Aides to Senate Democrat leader Tom Daschle said his party would fight the deal but the White House did not dismiss the plan immediately.