House Dems: Don't tax 'Cadillac' plans

[Omaha Steve]

http://www.politico.com/news/stories/1009/28013.html#ixzz0TCxgE1Op

By BEN SMITH & PATRICK O'CONNOR | 10/7/09 11:56 AM EDT


The letter from 154 House Democrats to Speaker Nancy Pelosi urges her 'to reject proposals to enact an excise tax on high-cost insurance plans that could be potentially passed on to middle-class families.' Photo: AP

More than half of the Democrats in the House have signed on to a letter denouncing a key element of the Senate Finance Committee’s health care legislation as labor unions draw a line in the sand on paying for reform.

The Democrats are attacking a plan to finance expanded health care by taxing expensive health insurance plans. The plan, sometimes cast as a tax on “Cadillac” plans, would in fact include the health care plans of many public employees and union members and has triggered a revolt from Obama’s labor supporters and their many allies on the Hill.

The letter from 154 House Democrats to Speaker Nancy Pelosi urges her “to reject proposals to enact an excise tax on high-cost insurance plans that could be potentially passed on to middle-class families.”

“This is not an obscure detail of health care reform,” said Connecticut Rep. Joe Courtney, who drafted the letter. “Taxing health benefits was explicitly debated in the campaign by presidential candidates and people running for Congress.”

Then-candidate Barack Obama attacked Republican Sen. John McCain in a series of television ads last fall for a plan to lift the tax exemption on health insurance plans, which he cast as a radical departure and a crippling new tax.

The Senate Finance Committee proposal is more limited — it would tax insurers, not the individual with the plan — but still seems to contradict Obama’s campaign rhetoric. Labor leaders say they hope the White House — which has taken a publicly neutral posture — will back the unions as the Senate and House negotiate a final bill.

“I know for a fact that the White House believes in our principle: Make those who don’t pay, pay,” said Larry Cohen, president of the Communications Workers of America, who is among labor leaders pushing for higher taxes on employers who don’t offer health insurance to their workers.

FULL story at link.

[endless october]

1. WTF is a "cadillac" plan?

one that actually pays for health care costs?

[eilen]

2. I guess. My objection is the mandatory part of the bill

If you plan to mandate everyone buy insurance, go single payor. Otherwise we are all just slaves to the the Ins. Cos. It's total bullshit. That is one huge reason I did not vote for Hillary Clinton or McCain. Who the hell is he working for?

[endless october]

4. i'm not against single payer.

i'm for it, actually. however, i'm for it if we actually PAY for it. there are many ways we can do this. ending the failed war on drugs is one way. a simple (sales) tax on pot could probably pay for most of it.

borrow and spend is something i'm completely against.

[Orrex]

3. I spoke with a business owner earlier this week

To his credit, his company provides excellent coverage for his employees, and he described it as "the cadillac plan."


FWIW.