Labor leaders met with the White House last week to hammer out a deal on the health excise tax. Depending on the outcome of today's Senate race in Massachusetts, that deal is likely to become law. So how good is it? Here's an overview:
People are saying that the so-called Cadillac tax "might fall flat" and "has real problems." And those are its defenders. I can't remember any new policy in recent history whose own advocates had so many complaints with its design. more »
A blogger contact has told me of a new argument in favor of the health excise tax: Since the tax will be imposed on insurers, the Senate's limit of 15% for insurance company profit and overhead will prevent the cost from being passed on to consumers. There are a number of reasons why that argument won't work: more »
The theory behind the "Cadillac tax" on health plans is little more than wishful thinking based on dubious research. Advocates believe that forcing employers to cut benefits will lead to cheaper, better care. That's like preventing rain by outlawing umbrellas. more »
The beat goes on: David Leonhardt, the Times economics blogger and tax supporter, had this exchange regarding the Senate's health excise tax on NPR's "Marketplace" program:
Leonhardt: (It's) a tax on the costliest health-insurance plan. It's an idea health economists really like. more »
Amid indications from President Obama that he wants the House to adopt the Senate's health tax, we learn that he will meet with labor to discuss their concerns about the tax's effect on middle-class American workers. more »
Respected health writer Maggie Mahar ("Money-Driven Medicine") got curious and decided to fact-check the excise tax. Wisely, she follows the money - which in the world of health care follows the chronically ill. Her findings? more »
In a new piece at The Huffington Post, your humble correspondent begins the New Year in a time-honored fashion: with an act of confession for past sins. The piece is entitled "I'm the Guy Who Cut Your Health Benefits. Trust Me." It deals with the health excise tax at some length, mainly while discussing the differences between abstract theory and real-world behavior. It also addresses the issue of insurance industry oversight and monitoring, which will be a critical element of any health reform processes.
A Washington Post poll taken in mid-October showed that 61% of people surveyed opposed the excise tax, with only 35% supporting it. A USA Today/Gallup poll taken at the same time showed essentially identical results, with 61% against the tax and 34% in favor. An Associated Press poll (pdf) taken a couple of weeks later showed 56% of respondents opposed to the tax and 26% in favor. (The less decisive responses to the AP poll may be due to the way they phrased the question.)
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