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Obama Considers Taxing Health Benefits To Pay For Reform

As President Obama looks for a way to pay for health care reform in the United States, key Democrats advocate taxing employer-provided health benefits, The Washington Post reports.

Kaiser Daily Health Policy Report Feature Highlights Recent Blog Entries

"Blog Watch" offers readers a roundup of health policy-related blog posts.The blogosphere is buzzing about the GOP "alternative" health reform proposal from Sens. Richard Burr (N.C.), Lamar Alexander (Tenn.) and Tom Coburn (Okla.), and Reps. Devin Nunes (Calif.) and Paul Ryan (Wis.). Known as the Patients" Choice Act (.pdf), it would create state-based private health insurance exchanges and provide U.S. residents tax credits to subsidize coverage premiums. Yuval Levin of conservative stalwart The Corner calls the plan "the best comprehensive health care proposal Republicans have produced to date, and shows that at least some in the party understand the need to engage the issue with a grasp of the differences between underlying problems (like cost control) and symptoms of those problems (like access to coverage), and with an actual appreciation for economic incentives and pressures." Marguerite Higgins of the Heritage Foundation"s The Foundry says the plan "features several important conservative principles for health care reform that would allow free-market solutions to take root in the broken U.S. health care system, and give patients more decision-making power with their health care dollars."But Michael Cannon of the libertarian Cato@Liberty blog says he is "troubled" by aspects of the plan that are "self-contradictory." He writes, "On the one hand, it lists "No Tax Increases" as a core concept. Do its authors not know that imposing price controls on health insurance premiums imposes a tax on healthier-than-average consumers? And where do they think the money for "risk-adjustment" payments will come from? Heaven?" The New Republic"s Jonathan Cohn seems to agree, saying, "The details are pretty unappealing, except where there are none; and the whole thing is presented as the antithesis of big government when, in fact, it too would require at least some government intervention." Overall Cohn thinks the plan indicates good news for Democrats, concluding, "Passage of a bill seems ever more likely, to the point where potential opponents feel they must offer alternatives that embrace some of the same concepts."The Washington Post"s Ezra Klein examines the structure of the plan, calling it "the bastard child of the Massachusetts health reforms and the McCain campaign proposal." He also seems to think it"s positive news for reformers, adding, "But it"s still a step forward for the Republican Party. It"s an admission that individuals can"t go it alone. That the state has a large and important regulatory role to play. The business model of insurers is not simply broken but actively cruel. A Republican Party that accepts the principles of this plan is a Republican Party that is much likelier to accept the principles of Obama"s eventual plan." He notes that GOP leadership was not involved in the proposal.Interesting elsewhere: