The Uninsured,Tax Credits,and Crowd-Out

Abstract

It is estimated that there will be 54 million citizens without health insurance in 2007. The nursing profession should consider policies that reduce the number of uninsured. This article describes the characteristics of the uninsured and the possible impact of tax credits and addresses some criticisms of tax credits. One of these criticisms is “crowd-out,” whereby those already possessing health insurance take advantage of policies meant to address the uninsured. Therefore, a percentage of the expenditure goes to the already insured. Several studies have estimated crowd-out in the Children’s Health Insurance Program and although each finds crowd-out, the levels appear low (11%-20%). The article concludes with a recommendation that nursing support refundable tax credits because they would reduce the uninsured, remove penalties for those already purchasing private insurance, and potentially create opportunities for nursing as consumers of health care are given additional choices.