For Immediate Release:

Contact: Matthew Frankel/Katharine Lister, (202) 546-0007/(800) 546-0027

The Progressive Policy Institute (PPI) today called on the new Administration and Congress to make health coverage a top priority. The PPI plan, "A Progressive Path Toward Universal Health Coverage," which was developed by PPI fellows Jeff Lemieux, Dave Kendall, and S. Robert Levine, MD, with the help of Stanford University Professor Mark McClellan, MD, would help Americans purchase health insurance through the use of tax cuts and federally funded grants to the states. It is a 'Third Way' approach that blends private markets and consumer choice with government responsibility and oversight.

"There are two big reasons 43 million people remain uninsured," according to Jeff Lemieux. "Health insurance is just too expensive for many people, and it can be a hassle finding decent coverage at a reasonable price. The PPI's proposal would make health coverage more affordable and easier to acquire."

The centerpiece of the PPI proposal is a refundable tax credit for people who purchase private insurance. The tax credit ranges up to $2,500 for people who get coverage on their own, and up to $1,000 for people who get coverage at work. Unlike other tax credit proposals, the PPI plan would enhance, not weaken, employment-based coverage. The proposal also includes grants to the states to ensure that fair choices of health coverage are available to all, young or old, healthy or sick.

The PPI proposal builds on proposals by George W. Bush and Al Gore, who both endorsed refundable tax credits for health insurance during the presidential campaign. In Congress, tax credit approaches have been proposed by liberal Democrats like Representatives Jim McDermott (WA) and Pete Stark (CA), as well as conservative Republicans like House Majority Leader Dick Armey (TX) and Representative Jim McCrery (LA).

"The PPI health proposal combines the goal of universal health coverage with the desire for tax cuts," said Senator John Breaux (D.-LA), ranking Democrat on the Senate Aging Committee and former chairman of the National Bipartisan Commission on the Future of Medicare. "I believe the PPI health plan could win strong bipartisan support in the Congress."

Enclosed in this release is a one page outline of the PPI Health Care Proposal. For additional information, web users may access the full document at New Democrats Online at www.ppionline.org or contact PPI's senior economist Jeff Lemieux at (202) 547-0001.