Key Senator Says Tax Health Care Benefits

As The White House Works With The Senate On Health Care Reform, A New Report Says Costs Will Soar And Ruin The Economy

(CBS/AP)  A Senate chairman who will have a major role in writing health care legislation said Tuesday he hopes to convince President Barack Obama that taxing some employer-provided benefits will help control escalating costs.

Senate Finance Committee Chairman Max Baucus, D-Mont., faces a hard sell. During his campaign for president, Obama ruled out taxing health benefits provided by employers.

"I know that's an issue we have to work out with the president, but I think it's an issue we will work out," said Baucus, who is among several Senate Democrats scheduled to meet with Obama Tuesday afternoon.

Baucus says the tax-free benefit packages Americans now enjoy are a big factor in the high costs of the country's health care system, because they provide workers free or low-cost access to too many health care services.

The senator's recommendation came at a White House event where Obama advisers released a new economic report that links fixing the economy with overhauling the costly U.S. health care system.

Obama is pushing Congress to enact sweeping health legislation this year to hold down costs and provide health coverage for 50 million uninsured Americans.

White House officials argue that overhauling the health care system is key to turning around the economy.

The report by the White House Council of Economic Advisers says that health care costs - now about 18 percent of the gross domestic product - will rise to 34 percent in 30 years if left unchecked, wreaking havoc on the federal deficit, businesses and working Americans.

"Health care reform is incredibly important not just for the American people but for the American economy," said Christina Romer, chairwoman of the Council of Economic Advisers. "Good health care reform is essentially good economic policy."

Critics were quick to dismiss the report.

"Everyone agrees that reducing the cost of health care would benefit our economy, but the administration hasn't offered a credible plan to do so without raising taxes or rationing care," said House Minority Leader John Boehner, R-Ohio.

President Barack Obama and his advisers have consistently sought to link health care and the economy but they're turning up the volume as Congress returns from a weeklong recess and turns its attention to health care.

Later Tuesday, Mr. Obama was set to meet at the White House with Senate Democratic leaders to "discuss the urgent need to get rising health care costs under control," according to a White House advisory.

On Monday, a coalition of industry groups submitted proposals to the White House they said would reduce the growth of their own costs by 1.5 percent a year, consistent with Mr. Obama's goals.

Also Monday, a group of progressive reformers announced they would spend $82 million this year to support Mr. Obma's health care agenda. The campaign includes the AFL-CIO, Change To Win, MoveOn.org, Democracy for America and other members of the Health Care for America Now coalition, which claims 30 million members overall.

Mr. Obama wants legislation that would hold down costs, guarantee choice and extend coverage to the 50 million Americans who don't have it now.

Two Senate committees are crafting legislation: the Health, Education, Labor and Pensions Committee led by Sen. Edward M. Kennedy, D-Mass., and the Senate Finance Committee, chaired by Sen. Max Baucus, D-Mont.

The Democrats on Kennedy's committee were meeting Tuesday for a first look at an outline of Kennedy's plans. It wasn't clear if Kennedy, who has been diagnosed with brain cancer, would be present.

Neither committee has released a full bill yet. Both have circulated proposals and differences have emerged, leading Kennedy and Baucus to issue a joint statement over the weekend promising to work together.

Majority Democrats in the House and the Senate want to bring the legislation to the floor by August.

[inesje88]

Will Max Baucus have to pay taxes on what "We The People" pay for him and his family to enjoy a platinum health care plan? He has been in an elected position since the 1970's and does not have a grasp of reality. Two American families go bankrupt every minute, every day, every week etc.. due to medical bills and 75% of them have health inurance when the health issue begins. How many of those families are Senators or Congressmen? None. We are their bosses, yet they have health care benefits that most of us int America can only dream about. Time to say the employees do not deserve a better health care plan than the employers. There is no divine right of better benefits for elected officials (especially ones who took $400,000.00 from the very companies he his overseeing).

If our elected officials were taxed on their benefits it is my guess(past performance predicts future outcomes when it comes to our elected elite), they would raise their salaries to cover those taxes.

When injustice becomes law, rebellion becomes duty. Don't stick your finger in the **** Max. The system is broken and the corporations who paid to have a seat at your senate finance committee hearing on health care reform are the problem. Take the greed out of health care once and for all. Give the middle and working class failies of America a bailout and peace of mind. Let families have a sound sleep knowing that if one of their children contracts a major illness it will not take with it the families home, savings and future. The American worker deserves to raise their family knowing the country they live in values their contribution. The health care system we employ now in this nation amounts to class war fare.

The only solution to the health care problems we face in the US today is to take the profit out of illness. Corporations have only the bottom line as their focal point, even when the public good is undermined. Allow American businesses to compete in the global market by undoing the heavy yoke of costly and top heavy insurance plans.

Americans have debated for years about abortion rights and wrongs. What about the rights of Americans once they are born? Should great health care be bestowed only upon those whose parents have achieved through hard work or connections well sought after positions?
What about Americans born with less than perfect genes? That is not how we alocate police or fire potection or k-12 education? Why health care? We have allowed greed to take over health care in this nation, and we as a nation are sicker in more ways than one for doing so.

Single payer health care, HR 676 is the only way to acheive the goals of everyone in nobody out health care, and for less than we pay for our present system where large segments of Americans face everyday with fear of the next illness.

[libendet]

May we remind our friends in congress that they are on government Health care. It's great for them, they just want us to stay in the Health Care for profit system. It's way out of control and at a time when more companies are shedding workers we will have to provide single payer health care to those who are simply not making enough money to pay large premiums for themselves and families.

Whatever worked in the past is just not possible anymore. Going into debt over sickness is untenable.

[sheriwine]

<<<Weren't HMO's Ted Kennedy's ballyhooed solution to the healthcare costs?>>>>>

In the 1960s, health care costs grew rapidly, and pressure mounted for federal government intervention. In fact, the term "HMO" was developed in the early 1970s as part of a NIXON Administration strategy to promote the growth of prepaid plans as a way of improving the capacity and efficiency of the nation's health system. Nixon saw this strategy as a big money-maker!

I am not sure there are answers to this economically challenged flailing country. Seems like our government is only interested in the next election. So, we wait and watch. Voting for the "right guy" seems to have no bearing anymore. You all need to admit that straight out. I've been a fighter, "stand up for _____" all of my life. It is of little use anymore.

[oltxgal]

At a time when this country is bankrupt, in crushing debt, facing the commercial real estate market collapse... the bankruptcy of Social Security and Medicare, Treasury bond devaluation... and printing of trillions of fiat dollars, with which we are buying debt from ourselves.... we face hyper inflation. How in the heck is this the time to look at nationalizing 16% of the economy (healthcare)... creating a Medicare-like nightmare of inefficiency, mismanagement, waste and fraud, or creating a national insurance program to unfairly compete with private healthcare providers, driving them out of the market!?!?!?! The nitwits in Congress are considering not only taxing employer provided healthcare benefits, but also ending the deductions for individuals who carry private insurance?!?!?! It is sheer idiocy, which will benefit no one but the bureauocracy, lead to substandard, and ultimately rationed healthcare!!!! Weren't HMO's Ted Kennedy's ballyhooed solution to the healthcare costs? How did that work for you? Are you on medicare or medicaid? How's that working for you? Universal, government controlled, healthcare must be most vehemently opposed! It is estimated that 31% of all medicare outlays are fraud! How can anyone have confidence that a Universal healthcare system would be less riddled with waste, fraud and corruption?!?!?! This is not only a matter of economic concern for the country.... it may be difference between life and death for individuals. Do you want some bureaucrat deciding what procedure or medication is appropriate for you? Do you want to wait years for critical cancer treatment, or delicate risky surgery which might save your life? Do you want to be denied new, but expensive medication, because it will not be covered? Do you want pharmaceutical companies to stop bringing new drugs to market, because they can't make enough to cover R&D? Think about it! Then, write your representatives, and tell them to abandon this initiative! Leave insurance in the private sector! Do NOT tax private insurance or employer paid benefits. They are trying to deny people choice, and force them into a totally unacceptable program! STAND UP for CHOICE! Oppose more wasteful, unproductive spending!!!!!!

[sheriwine]

<<<< Look at auto insurance, you have to have it. >>>>>

Do you even live in this country??? Comparing auto insurance to health insurance is beyond the absurd!!!! A family of three can pay upwards of $900-1200 per month for a health insurance policy as long as they are healthy by the way! How does this compare to auto insurance? Do tell.

[incog-nito]

I am in my 70s and retired but my company still provides my health care. I will stop getting it and go on welfare. Yes that is what I will do.
Posted by pollroller1

Pssst.... The vast majority of companies no longer provides health care for retirees. Those that still do (like GM) are excoriated by right wingers for being beholden to unions. With GM's bankruptcy it's likely that the health benefits will be wiped out too.

Most retirees are already on government-run health care, like Medicare. Do you know why? It's because no private insurers will ever write them a policy that they can afford. So consider yourself very lucky and stop whining. Without government health care most retirees are SCREWED.

[babooph]

These crooked ins companies have brainwashed so many. They do not explain why a choice of govt. ins would put them OUT OF BUSINESS!!!!They are so much better,but if given a choice the buyer..............

[mnbrant]

Pretty soon our health care system will consist of suicide booths in malls. And you probably will have to pay for that too. Death and taxes.

[winstrv]

I wonder if that applies to him and his fellow members? Why don't they have the same retirement system most government workers have?

[inesje88]

Our present for profit system of health care (through corporations known as Health Insurance Companies), aren't acheiving positive results for American citizens. If it did we would not be rate 37th by the WHO and spend nearly double per capita of what most other first world countries spend on health care with far better outcomes(lower infant mortality rates, quality of elder care etc.)

One of the primary reasons is corporations run our Health Insurance Industry. By law corporations can only consider the interest of their shareholders. They are legally bound to put their bottom line before everything else, even the public good. In order to not have their monopoly game over turned, these corporations give "donations" to US elected officials. This ensures that NOT FOR PROFIT health care has no seat at the table. Corporations have no soul and they are not meant to. Profits come before everything else.

US citizens who do not have health insurance must pay higher rates to institutes such as hospitals for the same care an insured person might pay. Issues like this are externalties. The unisured party is not involved in the transaction between the 2 (health insur. corp and hospital) but suffer because they do not have the muscle to lower the rate like the corporation. Often people w/o health insurance are unable to afford coverage due to pre-existing condition or finances. Too often this racket is shouldered by those least able to afford it.

In order to have a viable solution we must toss out the health insurance corporations. By eliminating them, patients would have more choice in doctors not less. Government would only collect the finances and dole them out to NOT FOR PROFIT administrative systems. No longer would a corporation whose only concern is bottom line, dictate to a doctor or patient what care would be permitted. Doctors would not work for the government.

If we do not change health care now, future generations will not only be saddled with trillions in debt from the bailouts, but work only to pay for health care and taxes. If we pass that one to the next generation we are as soul less as corporations.

[inesje88]

Great comment whitemale08. Single payer would eliminate the FOR PROFIT cartel that holds Americans hostage.
Wake up Americans. Please watch T.R. Reid's "Sick Around The World" to see how single payer works in several countries. Our elected officials should stop taking "donations" from the health insurance corp. and pharma and review systems in place around the world. Most people look only as far as Canada and the UK when contrasting health care options. Folks, there are numerous countries with numerous versions of single payer. Educate yourselves and demand your elected officials do the same. We elected them and when we allow DC to inact laws benefiting corporations interests and not ours, we have Fascism. We have Wall Street and the health care industry paying off our elected officials and running DC.
Please read up on Rick Scott and his campaign to keep promote the For Profit system we have now. Look up William McGuire who was let go from United Health when he back dated stock options (thank heavens for Sarbannes-Oxley), to gain over $1.6 billion in profits for himself. His golden parachute was over $1.1 billion. These dodgy characters and others in their positions have a great deal of money at stake and give large donations to elected officials.
Senator Baucus, is your premium health care plan that the US taxpayer gives you going to be taxed? Why don't you on the hill try to purchase your plans in the Free Market?
Senator Baucus, does your office have a red light hanging over your door? It should since you sold seats to your health care forum and did not save one for single payer. When elected officials accept donations from the health insurance industry, it comes from denying care to a person who counts on the insurance company for their care. Denying claims (and in turn people die, families become bankrupt etc..), and donating money to elected officials is a morally criminal act.

[cydygitt1]

We need National Health Insurance. You have the choice of putting your premium dollars towards a private or public policy. You choose the one you think provides the best coverage for your money.
Posted by sjc_1
-------------------

While I'm a firm believer in SP-UHC, at least the option for a government-run health care system without GREEDY profits would surely give us better coverage for those not able to be part of any corporate or group policy.

[cydygitt1]

If they are going to tax my health benefits Then I will cancel mine and go on welfare. This is the most ridiculous thing I have EVER heard of.
Posted by pollroller1
--------------------------


The most ridiculous thing I have EVER heard of, is this post.

You claim to have employer provided benefits, and if they are taxed, you're going to quit your job and and go on welfare as a form of protest?
Posted by hungry1968-15
---------------------------------

I am in my 70s and retired but my company still provides my health care. I will stop getting it and go on welfare. Yes that is what I will do.
Posted by pollroller1
-------------------------

I agree......that is simply ridiculous, but let us know how that works out for you.

[forrestlayne]

Baucus says the tax-free benefit packages Americans now enjoy are a big factor in the high costs of the country's health care system, because they provide workers free or low-cost access to too many health care services.

So that means that insurance companies that offer these policies are losing money due to high medical costs? My insurance goes up or down depending on the amount of claims filed from our company in the previous year. The more people use the insurance the higher everyone's premium is. And most companies that offer the goode insurance are actually "self-insured" in that they actually pay the insured amount and simply pay the carrier for handling the transaction. How many employers will drop their plans and tell teh employees to go on the governemnt plan and then pocket all that money? SHifts the paying to taxpayers and profits to themselves. This is a rich man's scheme for sure.

[sjc_1]

McCain wanted to tax health care benefits, it was a bad idea then and is a bad idea now. We need National Health Insurance. You have the choice of putting your premium dollars towards a private or public policy. You choose the one you think provides the best coverage for your money.

[stn_sage]

Let's see!

We can't "cap" or limit doctors salaries, at say---a million or $500,000 bucks a year---because THAT would be UNFAIR.

We can't prevent pharmaceutical companies from marketing dangerous drugs that weren't properly tested and that kill thousands of Americans every year, because THAT would be UNFAIR!

We can't "cap" insurance companies from raising rates at random at will, because THAT would be UNFAIR!

We can't regulate the services hospitals provide in order to prevent expensive duplication of services and equipment, because THAT would be UNFAIR!

However, we CAN TAX the health care benefits of middle and working poor class peoples, in order to provide FORCED medical coverage for many people who DON'T even want it!

Now, friends!! You don't have to have a '.Phd' to figure out, THIS DOESN'T MAKE ANY SENSE AT ALL!

There are a whole bunch of control points that can and should be acted upon before you even start thinking about taxing health benefits! But, politicians are content to take the lobbyists' dollars that represent these previously mentioned groups to give them what they want, and ABANDON the citizenry whom they are supposed to work for---in theory!

Shameful! But, you know what to do about it! Vote them out if you're not being represented!
Check out third party candidates, too.

[pollroller1]

You claim to have employer provided benefits, and if they are taxed, you're going to quit your job and and go on welfare as a form of protest?
I am in my 70s and retired but my company still provides my health care. I will stop getting it and go on welfare. Yes that is what I will do.

[hungry1968-15]

If they are going to tax my health benefits Then I will cancel mine and go on welfare. This is the most ridiculous thing I have EVER heard of.
Posted by pollroller1 at 1:36 PM : Jun 2, 2009





The most ridiculous thing I have EVER heard of, is this post.

You claim to have employer provided benefits, and if they are taxed, you're going to quit your job and and go on welfare as a form of protest?

[element51]

All this stuff is somewhat hard to understand and somewhat confusing. I will be 65 in a couple of months and I don't know what to do. And the funny thing is that I have a bachelors degree. That just goes to show you that a degree doesn't necessairly make you smart. Ha Ha. But I do remember that before Ronald Reagan was elected I had insurance and if I had a medical problem I went to the doctor, got treatment and gave them my insurance card and that was it. Then Reagan de-regulated the medical care industry and the insurance industry and suddenly I had no coverage. At least coverage that I could afford. I've been without insurance since Reagan was elected. I am lucky that since I am a veteran I have the VA to fall back on. There is a VA clinic 40 miles away that I go to for simple things but for anything major I am 200 miles away from a major facility. And to those of ;you who believe that Social Security is just welfare, try living on 900.00 a month and see if you consider yourself to be living in the lap of luxury. I paid all my life and I need that little extra to add to my pension in order to survive. But you neo-cons all believe that everyone is stealing from you. It really slays me when you run around screaming about what wonderful "christians" you are but at the same time don't believe that you are your brothers keeper.

[hungry1968-15]

"because they provide workers free or low-cost access to too many health care services."
............................................

Ummmmmm

The Dems think this is a bad thing???

So what the Dems are saying is that if you currently enjoy a good benefits plan and are able to see your doctor and get services, we want to take that from you because some out there do not have it. So they are admitting that their goal is to ration healthcare.

The reason we have a bad infant mortality rate is not because of the healthcare system. It is that we have 75%+ of all minority babies in this country born to teenagers with no ability to take care of themselves much less a child.
Posted by jonesjep at 11:48 AM : Jun 2, 2009





How did you interpret ALL of this wild speculation, out of the back half of ONE SENTENCE?