Congressman Charles B. Rangel - (NY15) - Summers Tells Rangel That He Will Recommend A Veto Of The Patients’ Bill Of Rights Unless The “Poison Pill” Republican Tax Breaks Are Removed



FOR IMMEDIATE RELEASE Friday, July 21, 2000	CONTACT: Dan Maffei (202) 225-3526

SUMMERS TELLS RANGEL THAT HE WILL RECOMMEND A VETO OF THE PATIENTS’ BILL OF RIGHTS UNLESS THE “POISON PILL” REPUBLICAN TAX BREAKS ARE REMOVED

WASHINGTON – Rep. Charles B. Rangel (D-NY) today released a letter from Secretary of the Treasury Lawrence Summers saying he would recommend President Clinton veto the Patients’ Bill of Rights (H.R. 2990), if the Republicans’ so-called tax “access” provisions remain in the final bill. Summers’ letter stated “... (The) proposals are expansive, would not expand coverage significantly, and could substantially increase premiums for some Americans with traditional health insurance coverage. Moreover, the proposals disproportionately favor high-income taxpayers and provide new tax shelters for the wealthy. As such, I would recommend that he veto H.R. 2990 if these tax provisions are not eliminated or significantly altered.” “Secretary Summers’ letter reinforces what we have been saying for the past year. The tax provisions that the Republican leadership attached to the Patients’ Bill of Rights are not access provisions at all. They are simply additional tax loopholes for wealthy Americans that waste billions of dollars that could be much more effectively spent to truly expand health insurance coverage to America’s 44 million uninsured,” said Rep. Rangel. “The House Republican leadership added these tax provisions to the Patients’ Bill of Rights as a poison pill from the very beginning. They know that the President will not sign a bill with these provisions. The Republican leadership’s insistence on attaching this bloated package of tax breaks is their way of keeping the Patients’ Bill of Rights from becoming law,” continued Congressman Rangel. Secretary Summers’ letter was responding to a letter from Rep. Rangel, Ranking Member of the House Committee on Ways and Means, regarding concerns with the so-called “access” provisions inserted into the Patients’ Bill of Rights by the Republicans. Summers detailed his concerns about specific provisions in the Republicans so-called “access” bill, criticizing in particular the proposal to expand Medical Savings Accounts (MSAs). Summers said the Republican provision could, “significantly undermine health insurance coverage by encouraging adverse selection.” Rep. Rangel agreed. “Even worse than not meeting their stated goal of expanding access, the MSAs provision would do real harm by destabilizing the insurance marketplace. It would draw healthy and wealthy individuals out of the private insurance market, leaving poor and middle-income individuals behind to face rising premiums. Why should we provide a new tax shelter for the rich at the expense of the poor and middle-income workers?” Rep. Rangel continued: “Providing coverage to those who need it should be our goal, not providing new ways for the rich to avoid paying their taxes.” (For a faxed copy of Secretary Summers’ letter, call 202-225-4021)

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