COLLINS BACKS EFFORT TO INCREASE ACCESS TO HEALTH INSURANCE FOR MILITARY AND FEDERAL WORKERS

Washington, DC - Senator Susan Collins (R-ME) is cosponsoring legislation that was introduced today that would increase access to health insurance for federal retirees and members and retired members of the uniformed services. The legislation gives these workers and retirees access to so-called "premium conversion" plans, which allow participants to pay for health insurance with pre-tax dollars. This would provide the same health insurance premium conversion arrangements that are now available to federal employees to military workers, retired military workers, and retired federal workers.

"We should provide equitable access to healthcare to all federal employees, retirees, and members and retirees of the armed services. And we should be able to provide them with equitable benefits compared to what most employers in the private sector provide their workers," said Senator Collins. "It can make a big difference in affordability, if people are able to pay for their health insurance with the income they earn before it is taxed. For some people, particularly retirees on a fixed income, it could mean the difference between having health insurance or none at all."

Federal tax law allows employers in the public and private sectors to permit their employees to pay for health insurance with pre-tax dollars. The legislation that Senator Collins is cosponsoring would revise the tax code so that federal and military retires would have the same opportunity through premium conversion plans.

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