Senators Reconsider Taxing Health Benefits

5013485Democrats are rethinking their priorities in the give-and-take of health care reform negotiations taking place in the Senate.

Sen. Kent Conrad, a moderate North Dakota Democrat, said some senators working on health care reform are having second thoughts about taxing health care benefits, a proposal that has been laid on the table as a way to raise revenue for reform.

Conrad said his colleagues are considering other options, given recent polling that shows widespread public opposition to the idea, according to various reports.

"It remains a significant option, but we're looking at other options," Conrad said, according to the Wall Street Journal. "When you go out and ask people across the country, their initial reaction is, they don't like it."

Not everyone's health care benefits would be taxed under the proposal. Currently, health care benefits are excluded from taxes, and the Senate is considering capping the exclusion at a certain level, rather than eliminating it all together. For instance, someone with a $17,000 plan may have to pay taxes on the last $4,000.

A recent CBS News/ New York Times poll found that Americans disapprove of taxing employer health benefits by two to one. President Obama is opposed to the idea as well.

Meanwhile, President Obama on Tuesday reaffirmed his commitment for a government-sponsored health insurance option.

"I am pleased by the progress we're making on health care reform and still believe, as I've said before, that one of the best ways to bring down costs, provide more choices, and assure quality is a public option that will force the insurance companies to compete and keep them honest," Mr. Obama said in a statement.

The statement came in the wake of comments White House Chief of Staff Rahm Emanuel gave to the Wall Street Journal today, indicating the president may be more open to negotiations over the public option.

"The goal is to have a means and a mechanism to keep the private insurers honest," Emanuel told the Journal. "The goal is non-negotiable; the path is" negotiable.

The Obama administration on Tuesday also endorsed a proposal to provide more support for patients with long-term care costs.