Our Nation is making progress toward this goal. We created Health Savings Accounts, which empower patients and can reduce the cost of coverage. We are working to pass Association Health Plans, so that small businesses can insure their workers at the favorable discounts that big businesses get. We must pass medical liability reform, so we can stop the junk lawsuits that drive costs through the roof and good doctors out of practice. We've taken important steps to increase transparency in health care pricing, and give patients more information about the quality of their doctors and hospitals.
One of the most promising ways to make private health insurance more affordable is by reforming the Federal tax code. Today, the tax code unfairly penalizes people who do not get health insurance through their job. It unwisely encourages workers to choose overly expensive, gold-plated plans. The result is that insurance premiums rise, and many Americans cannot afford the coverage they need.
We need to fix these problems, and one way to do so is to treat health insurance more like home ownership. The current tax code encourages home ownership by allowing you to deduct the interest on your mortgage from your taxes. We can reform the tax code, so that it provides a similar incentive for you to buy health insurance. So in my State of the Union Address next Tuesday, I will propose a tax reform designed to help make basic private health insurance more affordable -- whether you get it through your job or on your own.
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