The Excise Tax on "Cadillac" Health Plans

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I suppose everybody has a particular portion of this alleged health care "reform" bill passed by the Senate which they find the most objectionable. For some it's the individual mandate, for some it's the lack of a public option. For me it's the 40% excise tax on the so-called "Cadillac" plans. Better known as the 'screw organized labor and the middle-class' tax, in my opinion. It's not in the House version, they propose an income tax surcharge on individuals making more than $500,000 a year. But that might hit those who can write checks with several 0's on the end, so the Senate version contains the excise tax, which hits people who can't.  

According to the New York Times:

"More than 190 House members have gone on record against the Senate's proposed excise tax on "Cadillac health plans," which is also opposed by organized labor. But the White House and some health economists say the tax could help control health costs by encouraging employers to shop for cheaper policies that would not be hit by the tax."

No shit. So the better health plan that I took in lieu of pay increases will now be replaced by a cheaper policy with higher deductibles and co-pays. Lucky me, I get the worst of both worlds, lower pay and decreased benefits. Thanks for the change.

I recall someone who resides at the White House saying that if I liked my plan I would be able to keep it. Who was that masked man? Must have been the same person who was against an individual mandate and in favor (allegedly) of a public option.

Then the same White House comes along and blows this smoke up my ass:

"...the excise tax levied on insurance companies for high-premium plans, the so-called "Cadillac tax," will affect only a small portion of the very highest cost health plans...for the small sub-set of plans that are affected, the primary impact of this provision will be to increase workers' wages. Getting a pay raise is not what most people would call a tax increase."

Now tell me one about the tooth fairy and the Easter Bunny. First of all, "only a small portion?" I guess that depends on your definition of small.

"By 2016 the CBO says it will affect 19% of people with employer-provided health insurance (roughly 30 million Americans)...By 2019, it would affect the health insurance of roughly 58 million."

And, as usual, the burden falls disproportionately on the middle-class:"Only about 3.4 percent of the total new taxes produced by the excise tax will be paid by the top 0.8 percent of all taxpayers [those making more than $500,000 a year]...In contrast, 36 percent of the new taxes would be paid by the 27 percent of individuals and families making between $50,000 and $100,000."
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As far as that BS about companies passing along the savings to employees in the form of pay increases, I guess the "White House" missed these 2 recent surveys. One of 433 human resource executives which found that 78% of employers would retain the savings in the business, while only 9% would increase salaries. And one from Kaiser of 465 employer health plan sponsors, where the number of those who would increase pay was a whopping 16%.

To whom it may concern at the White House:

Don't piss down my back and tell me it's raining. Fool me once shame on you, fool me twice shame on me. 

9 Comments

At least we now know why this piece of crap legislation took over 2,000 pages to write.

No way could this administration thrown all the people under the bus, they managed to do with this "so called health care" reform -- using only a page or two.

Sixty people had to be appeased. They all had a "goodie list."

Looks like from Landrieu to Nelson, they all got what they wanted...

And, the 60% of the American people who wanted choice, or a public option.... lose again.

When 60% of the people stay home from the polls, in the next election... will anybody be surprised??

EXCELLLLLENT CHOICE. I think all it take to get in there is a "processing fee" to the right immigration official.

Nah, too cold up there for a Texas boy. Costa Rica.

I'm not saying I would desert my country at a time like this but..................

The province of Quebec, Canada has it's own, separate from Canada, immigration department. And, I'm told, you can get a permanent resident permit simply by declaring you like French toast.

If the Democrats "screw the pooch" and blow this huge advantage legislative they got, we might want to have a "Plan B".

Here’s another little goody. About that ban on rescissions---don’t count on it.

SEC. 2712. PROHIBITION ON RESCISSIONS.
“A group health plan and a health insurance issuer offering group or individual health insurance coverage shall not rescind such plan or coverage with respect to an enrollee once the enrollee is covered under such plan or coverage involved, except that this section shall not apply to a covered individual who has performed an act or practice that constitutes fraud or makes an intentional misrepresentation of material fact as prohibited by the terms of the plan or coverage.”

WHICH IS EXACTLY WHAT THE HELL THEY DO NOW.

This may make things a little tricky....

http://www.politico.com/news/stories/1209/30896.html

It just keeps getting better, doesn't it. Ahhhh, change is so good !

You tell 'em Des! Shame seems to be in short supply these days. I say, kill the bill in its present form - get it as good as you can in conference - and then DARE Nelson Lieberman and the rest to be on the wrong side of history! One thing for sure, unlike if this bill passes in its present form, I won't be any worse off than I am now!

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