(Washington, D.C) U.S. Congressman Sam Graves introduced legislation this week to make health care more affordable for small businesses and individuals. The bill allows individuals to fully deduct the cost health insurance premiums from their income taxes.

“We have to stop discriminating against individuals and small businesses simply because they do not work for big companies,” said Graves. “This legislation is a step in the right direction toward giving small businesses and individuals some of the same advantages that big businesses enjoy.”

Current law only allows individuals to deduct non-compensated health care costs, including premiums, when those costs exceed 7.5% of their adjusted gross income (AGI).  This usually requires taxpayers to spend thousands of dollars before being granted even a limited ability to deduct these costs. However, those individuals with access to an employer-sponsored group plan can pay their premiums on a pretax basis, which shields these payments from both income and payroll taxes. 

“This is another way in which we can help more small businesses and individuals afford health care,” said Graves. “Instead of creating more bureaucracy and growing government, Congress should be looking to common sense solutions that increase access to health insurance.”

Graves, the Ranking Member on the Small Business Committee, is also the lead co-sponsor of H.R. 850, the bi-partisan C.H.O.I.C.E. Act, which allows small businesses to pool together and negotiate for health care as one big company instead of many small ones. Over half of the uninsured are small business owners, their employees or their dependents.

“Everyone agrees that we need health insurance reform,” said Graves. “Congress needs to reset the discussion and work in a bi-partisan way to accomplish reform.”

H.R. 3776, The Helping Make Insurance Affordable for Individuals and Small Businesses Act, has been referred to the Ways and Means Committee.

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