Friday
Dec112009
Democrat Courtney Dismisses Proposed Tax On "Cadillac" Plans
Friday, December 11, 2009 at 6:14PM
By John DuBois - University of New Mexico/Talk Radio News Service
In a press conference Friday to discuss a Senate proposal to tax so-called "cadillac" health insurance plans, U.S. Rep Joe Courtney (D-Conn.) slammed the idea, saying it would create a "burden" for middle-class Americans.
"Cadillac" plans, characterized as the costliest of employer-based health insurance plans, would be subject to higher excise taxes under new reform measures being pushed by Senate Democrats.
Courtney, who was joined at the podium by Roland McDevitt, director of healthcare research for the consulting firm Watson Wyatt, expressed optimism that a Thursday meeting with Union leaders and workers would result in more support for the healthcare bill he helped pass in the House.
“What I think [the] session demonstrates, is that the Senate proposal, when you really scrutinize it, will result in a much higher burden to middle class families,” Courtney said. “This meeting today... I think really gave us a lot of policy reasons and political reasons about why the House position is better.”
“The Senate bill would impose a 40 percent excise tax on any premiums that exceed $8,500 for single coverage and $23,00 for family coverage in 2013,” said McDevitt.
Courtney added that his concern over the provision is shared by many across the country who argue that such a tax would force insurance companies to pass on higher costs to customers.
In a press conference Friday to discuss a Senate proposal to tax so-called "cadillac" health insurance plans, U.S. Rep Joe Courtney (D-Conn.) slammed the idea, saying it would create a "burden" for middle-class Americans.
"Cadillac" plans, characterized as the costliest of employer-based health insurance plans, would be subject to higher excise taxes under new reform measures being pushed by Senate Democrats.
Courtney, who was joined at the podium by Roland McDevitt, director of healthcare research for the consulting firm Watson Wyatt, expressed optimism that a Thursday meeting with Union leaders and workers would result in more support for the healthcare bill he helped pass in the House.
“What I think [the] session demonstrates, is that the Senate proposal, when you really scrutinize it, will result in a much higher burden to middle class families,” Courtney said. “This meeting today... I think really gave us a lot of policy reasons and political reasons about why the House position is better.”
“The Senate bill would impose a 40 percent excise tax on any premiums that exceed $8,500 for single coverage and $23,00 for family coverage in 2013,” said McDevitt.
Courtney added that his concern over the provision is shared by many across the country who argue that such a tax would force insurance companies to pass on higher costs to customers.
Reader Comments (2)
Rep Joe Courtney is more than right. The plans they are calling "high end" is camaflouged term for PPO plans that guarantee the patient's right to choose their own doctors. They also provide more adequate diagnostics and treatment options. These are not frivolous nor excessive plans and they do most certainly save lives and contribute to wellness. I know. My PPO plan I had as an inner city L.A. teacher allowed me to choose the best specialized brain surgeon I could find. I beat the odds and we successfully removed a large brain tumor and I returned to work for many years. I would have been denied that choice with an HMO which does not meet the Cadillac criteria. I would not have been able to get the support care with an HMO that I needed either.
Our basic rights to adequate health care are being challenged by the Senate bill and President Obama's support for it. This must be stopped. Ruth Ehrenberg Torrance , Ca
Why should these plans be taxed more?? The people that have these plans have sacrificed their pay for this insurance package. They are already paying highly for these plans & now the tax me admin wants more?? Pretty soon we won't have any money for them to take & they'll just have to keep printing money like they are now!!!