Baucus, Grassley Release Report on Financing Health Care Reform

The following is an excerpt from Capitol Report, a weekly e-newsletter from IHRSA Public Policy. IHRSA Members- subscribe today!

On Monday, Senate Finance Committee Chairman Max Baucus (D-Mont.) and Ranking Member Chuck Grassley (R-Iowa) released a report on policy options for financing comprehensive health care reform. This is the third and final report from the Committee before they begin to mark up legislation in June. Three potential areas for funding are explored in the report; two are significant for IHRSA’s health promotion efforts.

One section the report explores current health care tax expenditures. Among those, are nine different policy options including modifying or eliminating Flexible Spending Accounts (FSAs). Any change to FSAs is of particular importance to the fitness industry as it is the main tax vehicle for the Personal Health Investment Today (PHIT) Act (H.R. 2105).

While this report is not an outline of legislation that the Committee will consider, it does indicate the direction of the policies the Committee could well pursue. IHRSA has been and continues to heavily lobby members of the Senate Finance Committee and other Senators for their support of the PHIT Act. In fact, two Senators have expressed strong interest in introducing the bill in the Senate (it is currently, and historically has been, introduced in the House only). Fitness professionals are also speaking out. Earlier this month during the Summit for a Healthier America, fitness professionals met with staffers on the Committee and the offices of Senators on the Committee. It will be vital to the potential inclusion in any health care reform legislation that there is vocal support for Americans to continue to have access to FSAs and that FSAs be expanded to encourage healthy lifestyles.

The Senate report did address lifestyle tax proposals to “promote wellness and healthy lifestyle choices, and curb activities that increase overall health care costs.” The two policy options presented included the taxation of alcoholic beverages and excise tax on sugar-sweetened beverages. These measures demonstrate the Committee’s recognition that tax policy is a proven way to effect individual behavior change.

While these policies might “curb activities that increase overall health care costs” they do not go far enough to “promote wellness and healthy lifestyle choices.” Diet is only one part of the balance needed for a healthy lifestyle. Physical activity provides health benefits that diet alone cannot achieve. IHRSA will continue to lobby the Finance Committee and key Members of Congress for their support of tax policies that encourage physical activity as part of health care reform.

While IHRSA lobbies key Members, it is important that all Members of Congress hear from fitness professionals in their districts about the power of exercise and its impact on the people that they represent on Capitol Hill. You can make your voice heard by joining the Campaign for a Healthier America’s virtual march on Washington.

- Breanne McGahey