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.