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Entries in Cadillac Health Care Plans (1)

Friday
Dec112009

Democrat Courtney Dismisses Proposed Tax On "Cadillac" Plans

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.