Reforming Health Care

From The Heritage Foundation

by Edmund F. Haislmaier



Congress must prepare now for the next disaster. The recent hurricanes that devastated the Gulf Coast states focused national attention on some major inad�equacies in America?s disaster response system. One set of inadequacies that policymakers need to address concerns the ability of medical providers and the health insurance system to cope effectively with the disruptions caused by major disasters, whether natu�ral or man-made.



In the case of health insurance, H.R. 4086, a bill to amend the Internal Revenue Code, was recently introduced by Representative Bobby Jindal (R?LA) and a bipartisan group of Representatives from the Gulf States. The bill offers a simple and effective mechanism for minimizing disruptions in private health insurance coverage following a major disaster. The bill would provide a temporary, refundable, and advanceable health insurance tax credit to help those who are affected by a major disaster to continue pay�ing the premiums for their private health insurance coverage, thereby lessening their need to rely on pub�lic assistance through Medicaid or join the ranks of the uninsured.



H.R. 4086 is a limited bill, so it does not address the adequacy of disaster preparedness in the health care delivery system or make changes to ensure con�tinuity of coverage for individuals enrolled in public assistance programs such as Medicaid. However, it does offer an important solution for the 65 percent to 70 percent of the population covered by private, employer-sponsored, and non-group health insur�ance. As such, it is a significant piece of the policy puzzle for ensuring that America is better prepared for the next major disaster.