Healthcare

Taxing Cadillac Plans

This will cause a bit of row in the comments, but I'm having a hard time disputing this video.

On the facts, the president has absolutely changed his position on so-called Cadillac health insurance plans. The video plainly shows this. During the campaign, he was against taxing Cadillac plans. Now he appears to support the tax.

While I understand the "bending the cost curve" argument in support of the tax in the Senate bill (the tax discourages the purchasing more expensive plans, thus bending the cost curve as people opt for less expensive plans), I can't get around the fact that this tax will still impact some middle class workers. That's the downside, and it's why there really needs to be some other device for revenue generation and cost reduction. The Democrats and the White House can do better.

But a few things I don't agree with in the video. First, the word "lie" gets tossed around quite a bit, as is the notion that because of this position reversal ("lie" in the video), we should write off the entire Obama presidency or the healthcare reform legislation. It's a kneejerk, over-the-top conclusion and it diminishes an otherwise solid argument against the president's position on the tax.

UPDATE: I've been hearing rumors that the president also supports an exemption for middle and lower class workers. In other words, the Cadillac tax would only apply to earners above a certain income level. Hunting for confirmation.

UPDATE 2: Oh yeah. I suggested a couple of weeks ago that they should only tax Cadillac Plans held by rich people.