Wednesday, June 10, 2009

Health Care Reform - Now or Never

Obama has noted that health care reform is a key priority for his administration. This is a long time coming since Clinton failed during his administration. There is a move in congress to change benefits and make it more affordable for all Americans. Further, the reform is focused on leveling benefits equal to what the congress receives now.

Senator Max Baucus (D-Mont.) said he is drafting the health reform measure, which he expects to unveil next week. He told reporters that taxing employer-provided benefits is "perhaps the best way to raise money for an overhaul of the health-care system" and offered details about the form that tax is likely to take.
Baucus said his proposal is likely to cap benefits at "a level higher than the actual benefit that members of Congress receive today." An employer-provided plan worth less than that level would remain tax-free, he said, while any benefit exceeding the cap would be taxed as ordinary income.


Such a tax, if adopted, would be phased in over "several years," Baucus said. And it would be likely to "grandfather" in health benefits set as part of a collective-bargaining agreement, he said, allowing union plans to remain tax-free until new contracts can be negotiated.

Baucus declined to say how much money the proposal would generate. The nonpartisan Joint Committee on Taxation estimates that taxing employer benefits above the value of the Federal Employees Health Benefit Plan, adjusted for inflation, would generate nearly $420 billion over the next 10 years -- a sizable chunk of the $1 trillion or more likely to be needed to expand coverage for the uninsured.

Is this the beginning and will it ever pass. there are 47 million Americans without health coverage and there is a large silent group that is currently under insured. Help may be on the way.

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