Obama Leaves Health Benefit Tax "On Table"

Meeting Senators On Health Care Reform, President Remains Open To Idea Shunned During Campaign

(CBS/AP)  President Obama is leaving the door open to taxing health care benefits, something he campaigned hard against while running for president.

Senate Finance Committee Chairman Max Baucus, D-Mont., raised the issue with Obama during a private meeting Tuesday with the president and other Democratic senators and later reported the president's response: "It's on the table. It's an option."

The federal government would reap about $250 billion a year if it treated health care benefits given to employees like wages and taxed them.

Baucus and others are eyeing that money as they search for ways to pay for a costly health care overhaul that would extend coverage to 50 million Americans who are now uninsured. That could cost some $1.5 trillion over 10 years.

The president adamantly opposed health benefit taxes during the campaign, arguing they would undermine job-based coverage. But he's now indicating openness to that suggestion from Congress, even if he criticized Republican presidential rival John McCain for proposing a sweeping version of the same basic idea.

Obama has made some suggestions of his own for paying for a health care overhaul, including cuts to Medicare and limiting tax deductions wealthy people can take, but they've run into opposition from Congress. And, they only add up to about $630 billion over 10 years.

"The president made it clear during the campaign that he has serious concerns about taxing health care benefits," White House spokesman Reid Cherlin said in a statement about Tuesday's meeting.

"He stated again his belief that health reform can't wait another year, and that while all options should be considered, those options should include the revenue proposals that he included in his budget," Cherlin said. "He made it very clear that he prefers the approach he has already outlined."

After the talks, the President acknowledged, however, that without significant measures to reign in costs, "it is going to be very difficult for us to expand coverage." (Read more on Obama's meeting with the Senators in the Political Hotsheet blog.)

"These two things have to go hand-in-hand," Obama said.

Some experts think limiting the tax exclusion for health benefits is the only way to get the necessary money to pay for a sweeping health care overhaul. But there's opposition from organized labor and from many Democrats, including House Ways and Means Chairman Charles Rangel, D-N.Y., who said recently there was "no way" he would support the approach.

Baucus wants to look at limiting - but not entirely eliminating - the tax-free status of employer-provided health benefits. Obama is leaving the details of crafting a health care bill to Congress and used Tuesday's meeting to urge senators to swift action.

"This window between now and the August recess I think is going to be the make-or-break period," Obama said before the meeting was closed to reporters. "This is the time where we've got to get this running."

[inesje88]

The comments here that mention that insurance companies need to be able to sell their wares in diffferent states and in turn that "competativness" will result in a decrease in rates , forgot one main issue, health insurance companies are corporations.

By law corporations can only consider the interest of their shareholders. They are legally bound to put the bottom line before everything else, even the public good. If the President chooses to got the route of mandating every American must have health insurance, these corporations are not suddenly going to change and put the concerns of the policy holders paramount to those of the shareholders. The can not, they are legally bound to put the bottom line first.

Please watch T.R. Reid's PBS production "Sick Around The World". It showcases several 1st world countries and their solution to "everyone in and nobody out" health care.

When it is discussed health care benefits be taxed, what about illegals? Will they still be allowed to access public health plans that "legal" workers can't? Our open border hasn't had the best interest of the middle and working class of people in the USA, guess neither will taxing health care benefits? Will our elected officials have their platnium plans taxed? If so, will they vote them selves raises to cover the tax? (How about taking away their platinum plan and allowing them to pay for one in the "free market"---don't forget they work for us, we the people). Since when does the employee tell the employer what they want? Will the President's appointees have to pay taxes on their health plans? I remember Tiny Tim (Geithner) couldn't figure out his taxes and owed from prior years. Will there be someone appointed by the White House to help appointees figure out how to pay taxes on this benefit or are we just going to beleive them? What about the no new taxes on anyone making under $200,000.00 Mr. President? We don't have a 2 party system in this country. Same bird, different wing. The left-right paradigm owned by the oligarchy running this country. Taxes are meant for the middle and working class people.

There is a great plan out there. HR 676. Single payer, which as most informed people know is not socilaized medicine. Single payer reps.were not even invited to Max "I accept money form health insurance companies" Baucus, reform committee meetings. Max even had doctors and nurses arrested when they showed up at the meetings asking for a seat. How much for a seat Max? We know what you are, now we are just negotiating. Guess, Capitol Hill is just another red light district.

"We the People", need to say enough to health insurance CEO's receiving $1.1 billion golden parachutes (after being found guilty of back dating stock options resulting in a $1.6 billion payday--this is for William McGuire former of United Health--just for him-not the corporation). We have turn off the tube when Rick "I'm guilty of medicare fraud" Scott comes on talking about horror stories from Canada and the UK. There is alot of money to made in this country by not providing health care by corporations that have health care in their title. These corp's give large sums to many elected officials."We the People" need to say no more bankruptcies due to medical costs. No mandatory buying health insurance. YES TO HR 676, everyone in, nobody out.

[noloyalisti]

What a picture in this article. A progressive President with a bunch of slimy big corporate executives who hate America. They could care less about health or the well being of the people. They only know one thing: greed.

Thanks you very much, President Obama ofr supporting the public option for health care. There nothing like some good old fashioned competition to help the market. This will be key to get affordable quality health care for everyone.

[toldyouso29]

If I don't have actual expenses, I keep all those funds, and can apply them in the future to health expenses. Basically it gives me insentive to manage/control my expenses--the piece that is typically missing in most health plans. My plan caps my max out of pocket at $6,000, above which the plan pays 100%. It also pays a portion of expenses when I have reached a deductable level of my plan. For my case, my previously deducted health benefit costs were more than the $6,000 max out of pocket of the current plan, so I am better off already. Cash flow timing while building funds is an issue, as is current multiprovider record keeping. But costs decline. The deduction is limited to the actual out of pocket run through the HSA, for me, the same as before but only if I use it all.
Posted by ThinkDeeper at 12:53 PM : Jun 3, 2009


What kind of HSA do you have? Better go read that fine print again, bucko. Most HSA are only good for that tax year as one must either use it within that year OR LOSE all the monies remaining when that tax year ends. Many of us, who do not have enough expenses, end up losing most of the 5800 to 6000 in our plans. Because even with basic insurance, many things such as routine dental, eye care are covered, therefore this decreases the amount that can be removed--I know of NO PLAN in an HSA which allows anyone to keep money not spent on health issues--most plans require people to turn in EOBs or have actual receipts of payment sent in from a provider and then the person is reimbursed once the provider shows that they have been paid.

I have had an HSA since 1987--NONE for any company I ever worked for allows persons to keep the money--this is because the money is pretaxed and cannot be used for anything but health expenses and cannot be used in any year except the year and salary that was that tax year.

Blow that smoke somewhere else.

[toldyouso29]

Already, I have a health spending account that loses money every year because we can't spend enough to deplete the account in time. I do not want to pay taxes for coverage that I do not use--the net result of trying to tax benefits is that many people would opt for no coverage--and thus, the amount of non covered families would rise--after all, why should people pay taxes on something that they may not use and even if they do use, they have to pay 20 to 30% of the costs up to 6000.00 or more per year?

If I had to pay taxes on my health care benefits, I'd rather have none and join the rest of the non insured on the public dole--in fact, I think many Americans would. This gambit will backfire big time.

[Aldymac]

Back before "insurance" health care was affordable by everyone, but when insurance companies found out how much they really could make by paying polititions and health care officials bonuses, greed took over and we are where we are because of "profit".
Nationalised health care will mean profits beyond anything they have ever made in the past, and polititions and health care officials will benefit far more than the people in this nation when it is bankrupted by the very system that is supposed to "help" all the people.

[noloyalisti]

See Obama in the picture above negotiating with criminal corporate CEOs. That is the first mistake. We need to cut those huge profits out of health care, a human right. Then we could have universal health care and save money at the same time. The entire debate is wrong. Typical greedy, dumb, spoiled and ignorant Americans!!!!!!!!

[cdegolier]

If you make 1,000,000 dollars why do you scream about taxes, if you are blessed enough to secure this type of money and not because you were so smart or a genius you got it because it was left to you by your grandparents who reeped the benefits of someone elses labor(free, i might add) or you stole it from investments that you all knew wouldn't work and would put us in a mess in the long run all the friends notified their friends and they all made money and now we have to straighen it out, I am not complaining because this is the way rich people do and always have, and as long as we have their capitalistic system we will continue to pay for their riches. I know that I know that I know
Posted by jeanise55 at 8:20 AM : Jun 3, 2009

I seriously have no idea what the heck you are talking about. Obama wants to tax health benefits that working class Americans receive, meaning anyone who gets their health insurance from their employee will be taxed on it to pay for his program for the uninsured. Where exactly does it say only rich people. My husband and I are certainly not rich, when I was 18 making $7.00 per hour and paying for health insurance I wasn't rich.

[taryder]

Is there ANYTHING this man said during the campaign that was TRUE!!! What CHANGE?????

Now we have THREE+ WARS and COUNTING.......Now we say TORTURE & WAR CRIMES is OK for the United States........Now we REWARD the WEALTHIEST BANKS and COMPANIES for STEALING OUR MONEY.......Now we DOUBLE GWB's FAITH BASED in the GOVERNMENT & WHITE HOUSE......NOW!!! we STILL have GWB's people onboard INCLUDING ALL THE MILITARY CALLING OUR SHOTS (literally!!!!), and NOW we are GOING INTO A CYBERWAR!!!!.......NOW we have FEWER CIVIL LIBERTIES, and WHERE???? did our DEMOCRATIC PARTY go????

I ask you, WHAT HAVE WE BECOME????????
Where is our CONSTITUTION, DEMOCRACY, and the RULE OF LAW and WHAT it MEANS to be CIVILISED??????!!!!!

[ThinkDeeper]

I realize it is a complicated system, and my case won't fit for everyone. But I hope the policy makers will consider some of the concepts at work in the relatively new healthcare plan format of the Health Savings Account (HSA) and the high deductable plan that goes with it. In my case with a family, my employer pays for the basic policy only. All of the healthcare plan benefits that were previously deducted pretax from my paycheck are no longer deducted to pay insurance. I chose to have them deducted and contributed (up to ~$5,800) into my family HSA, and then use those funds to pay for actual health expenses as they occur. If I don't have actual expenses, I keep all those funds, and can apply them in the future to health expenses. Basically it gives me insentive to manage/control my expenses--the piece that is typically missing in most health plans. My plan caps my max out of pocket at $6,000, above which the plan pays 100%. It also pays a portion of expenses when I have reached a deductable level of my plan. For my case, my previously deducted health benefit costs were more than the $6,000 max out of pocket of the current plan, so I am better off already. Cash flow timing while building funds is an issue, as is current multiprovider record keeping. But costs decline. The deduction is limited to the actual out of pocket run through the HSA, for me, the same as before but only if I use it all.

[cdegolier]

What next? A tax on our tax returns?
Posted by Questionews at 7:41 AM : Jun 3, 2009

That's a good one, he can use the money to fund another ridiculous cause.

[DaBroiler]

So much for Obama's claim that 95% of Americans would not see their taxes increase.

Another Obama campaign lie?

[tazmjam]

Bush believed in trickle down economics and created a mess. Obama seems to believe in trickle up economics and will create a mess. When will anyone in our government of either party figure out that the middle and working class is the oil that keeps the gears in this country moving? Lose the middle and working class and this country will collapse just like Rome. Most insured people in this country pay for at least part of their insurance and sometimes the entire premium for their families, plus a deductible, co-pay, etc. All this will accomplish is to lower the net pay of working families who are already struggling, plus reduce their standard of living and buying power, that should help the economy. Great idea IDIOTS.

[jeanise55]

If you make 1,000,000 dollars why do you scream about taxes, if you are blessed enough to secure this type of money and not because you were so smart or a genius you got it because it was left to you by your grandparents who reeped the benefits of someone elses labor(free, i might add) or you stole it from investments that you all knew wouldn't work and would put us in a mess in the long run all the friends notified their friends and they all made money and now we have to straighen it out, I am not complaining because this is the way rich people do and always have, and as long as we have their capitalistic system we will continue to pay for their riches. I know that I know that I know

[patocc123]

Funny how this article was quickly cycled off the front page.

[Questionews]

What next? A tax on our tax returns?

[cydygitt1]

"America ranks 37th in the world for best health care systems, behind countries we'd expect like France, Japan, and Norway, and also countries that might surprise you, like Colombia, Saudi Arabia, and Chile."
......................

That info has been proven to be UNTRUE.......
Posted by jonesjep
------------------------

PROOF?

Please provide some PROOF or we'll just know you keep posting LIES!

The World Health Organization (WHO), in 2000, ranked the U.S. health care system as the highest in cost, first in responsiveness, 37th in overall performance, and 72nd by overall level of health (among 191 member nations included in the study.

A 2008 report by the Commonwealth Fund ranked the United States last in the quality of health care among the 19 compared countries.

[cydygitt1]

Perhaps you also have not heard of 6 months waits for routine exams under "government health care".

Posted by vinnyb5
----------------------

Oooooh......is that the new rick scott CPR propaganda message they've been showing on the murdoch network? Why should the usual republican't fearmongering surprise me?

We already have 50% of our current health care under government control, and I certainly haven't seen 6 months wait for anything with those on Medicare! Stop the LIES!

[cydygitt1]

Perhaps you also have not heard of 6 months waits for routine exams under "government health care".

Posted by vinnyb5
----------------------

Oooooh......is that the new rick scott CPR propaganda message they've been showing on the murdoch network? Why should the usual republican't fearmongering surprise me?

[cydygitt1]

Maybe if you thought a little bit about self sufficiency you wouldn't either.

Posted by mjvwsr
---------------------

BIG MOUTH republican'ts are a dime a dozen, always trying to break their arms patting themselves on their own backs in a most delusional and selfish way. You can keep paying exorbitant premiums on your health care as the GREEDY for-profit insurance companies keep raising their rates every year, since they have a need for bigger and bigger profits, while giving you less care. That's your delusional choice. I want more OPTIONS to curb their monopoly on American's health care, and if you don't, that's your idiotic choice.

BTW, I'm much more self-sufficient than you'll EVER be, so stop talking out of your anus.

[cydygitt1]

Well, lucky for me he's already given my change to GM and Chrysler!
Posted by rational_1
-------------------------

Short-term memory loss or just selective memory?

It was bush/paulson that started the $700 Billion TARP for their wall street/banker cronies back in Sept. 2008, and then started the Detroit bailout as well.