The American Spectator : Pink Cadillac

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Pink Cadillac

By Peter Pitts on 8.20.09 @ 6:07AM

Welcome "Cadillac health plans" to the rhetoric of healthcare reform. It's not the last time you'll be hearing it.

Now that Uncle Sam is in the automotive business, some members of Congress are beginning to behave like used car salesmen (my apologies to used car salesmen). Specifically, some of our elected representatives are trying to sell the American public on healthcare reform via the old bait-and-switch.

The issue at hand is taxing employer-provided health benefits -- another third rail in the battle for healthcare reform.

Sixty percent of the American public receives health benefits through their jobs -- and they're not "free." According to the Kaiser Family Foundation, the average American worker with employer-provided healthcare pays about 41% of the cost.

Two of the players in Congress, Senators Baucus and Wyden, want to tax employer-provided health benefits when they're "above a certain value."

Question: is that "certain value" before or after the 41% cost-share?

For those with selective memory issues, during the most recent presidential election, candidate Obama called candidate McCain's proposal to tax employer-provided health benefits "the largest middle-class tax increase in history."

Here's what Josh Karden, Mr. Wyden's chief-of-staff, has to say on the matter:

"Cadillac health plans should be treated as income, regardless of who is receiving them." Mr. Karden specifically mentions "wealthy chief executives."

Welcome "Cadillac health plans" to the rhetoric of healthcare reform. It's not the last time you'll be hearing it.

How do you define a "Cadillac" health plan? Didn't candidate Obama say that he wants every American to have "the same healthcare as members of Congress?" (Hint -- yes, he did.) Are the "employer-provided" health benefits that federal employees have "Cadillac?" (Hint -- yes, they are, so long as you define "Cadillac" as having extensive prescription drug coverage and ample patient choice.)

Does this mean Uncle Sam will tax the healthcare benefits of members of Congress, federal government employees, teachers, fire fighters, police officers, as well as "wealthy chief executives"?

Consider a new website set up by American Federation of State, County and Municipal Employees and the AFL-CIO -- StopWydensHealthtax.com.

Is that a coalition I hear breaking apart?

Also, does this mean the touted "public plan" that's getting so much attention won't be of the "Cadillac" variety?

Perhaps it will be more like a Yugo or a Zhiguli.

This is healthcare reform?

topics:
Health Care

About the Author

Peter Pitts is partner/director of global health at Porter Novelli, a senior fellow at the Center for Medicine in the Public Interest, and a former FDA associate commissioner.

Letter to the Editor View all comments (13) | Leave a comment

Appleby| 8.20.09 @ 11:36AM

Is this the Cadillac CTS-V that used to race in the SPEED World Challenge and can arrive track-ready and beat the sox off the Audi A4?

Or is the Cadillac after a Government Committee of bicycle riders gets its hands on the plans?

JP| 8.20.09 @ 4:35PM

I actually am for taxing employer based health plans, but at the same time Congress would have to give families large tax credits so they can buy thier own.

This would alleviate the burden from businesses of providing employees with WWII era benefits that eat into thier bottom line. It would also free employees of a)remaining at a job only because of the health insurance, and b) free up more money for higher salaries. Many businesses cannot afford to increase wages when they are forking over so much to purchase expensive health care plans.

If Congress did this and allowed insurance companies to sell plans across state lines, and if tort reform was done, the cost of health care and insurance would drop.

If people are worried about catastrophic health care, Congress could provide additional tax credits for people who purchase catastrophic health care plans.

c. j. acworth| 8.20.09 @ 5:00PM

Are the health plans of the folks who make Caddilacs (UAW) Caddilac plans?

jr| 8.20.09 @ 5:03PM

Hey owner of that pink Cadillac, you could have gotten $4,500 for that clunker and could have purchased a Japanese car.

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ptson| 8.22.09 @ 5:03PM

I think it is only fitting that the private "Cadillac" Congressional Health Care Plan should be named after Teddy Kennedy. The TEDDY KENNEDY PLAN, a symbol of self-indulgence and total disregard for the public. Congress should be taxed on their plan.The other plan, the PUBLIC plan is something else, however. I suggest that the public plan be named the MARYJO KOPECHNE HEALTH CARE SYSTEM. This will properly memorialize a lifetime of Teddy's work. Surely the public WILL NOT receive the same benefits as Congress but this Kennedy plan will provide the same level of care given to Maryjo by Teddy, with similar results. For those who wait eagerly for passage of the public plan, (as Maryjo probably waited) my advice based on past history is DON'T HOLD YOUR BREATH!

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