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?