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Posts Tagged ‘cadillac tax’

Deals Taking Shape

The deals keep coming following a marathon meeting Wednesday.  Reports have also emerged of an apparent deal is taking shape, and it looks like collectively-bargained benefits will be exempt for a period of time from the new excise tax on high-value insurance plans.

The Washington Post’s Ezra Klein looks at the makeup of yesterday’s informal conference meeting between the White House and congressional leaders.

NPR’s Julie Rovner says the deal “marks the beginning of the endgame” in House and Senate negotiations. She cautions that there’s still several steps to go: “So whether or not President Obama gets to sign a bill by end of this month or the first week of February, however, is still anyone’s guess.”

Hot Air’s Ed Morrissey thinks an exemption for union-negotiated health plans runs afoul of the Constitution: “A sliding scale?  That would mean that the tax would not be applied universally to all citizens, which could run afoul of Article I, Section 8 of the US Constitution.  Specifically, that states that Congress has the power to levy taxes, ‘but all Duties, Imposts and Excises shall be uniform throughout the United States[.]‘”

Heritage’s Conn Carroll isn’t happy with what was reportedly negotiated: “Now Big Labor will get all of the big government health care spending they always wanted, but they will not have to pay for it. And Obamacare’s Big Labor handouts don’t end there. The legislation also sets aside $5 billion to subsidize the costs of employer health benefits for early retirees.”

Jay Cost of Real Clear Politics analyzes a count of undecided House Dems and says, “Still, I think it is far [too] hasty to say that this reform is inevitable. Minimally, the margin in the House is going to be razor-thin either way. We know that for sure, which in turn suggests that we shouldn’t take final passage for granted.”

Wonk Room’s Igor Volsky looks at statements from legislators pledging to overturn parts of the health overhaul bills so as not to implement them, and says, “For reform to work, lawmakers who have pledged to “roll back provisions” of reform should not be responsible for implementing it. House and Senate negotiators must adopt the House bill’s more centralized approach or develop a compromise that establishes a national exchange but allows states a certain level of flexibility.”

And the American Spectator’s Philip Klein, who says he is “absolutely in favor of any efforts to repeal” cautions that such efforts are unlikely to be successful: “At the same time, however, I think that if the health care bill gets signed into law, it’s highly unlikely Republicans will be able to repeal it, or even major portions of it. Most Democrats won’t be eager to overturn the greatest domestic achievement of their party since 1965 — and you’d need to pass the repeal through the House, through the Senate with 60 votes, and then have the President sign it. … … So, while I think it’s certainly worth aiming for, opponents of Obamacare must also be thinking about ways to reform the system if the repeal effort isn’t successful.”

Thursday, January 14th, 2010

Handicapping The Health Bill Negotiations

Bloggers are mulling over Democratic leaders’ terms of negotiation for merging the House and Senate health overhaul bills.

Wonk Room’s Igor Volsky eyes stories on whether the “ping pong” strategy is working, and thinks the talks have hit some obstacles: “But now, House negotiators are suggesting that the Senate’s excise tax, state-based exchanges, poor affordability standards and preservation of insurers’ anti-trust exemption may not have enough votes to pass the House.”

The American Spectator’s Philip Klein reacts to news that collectively-bargained agreements might be exempt from the so-called ‘Cadillac tax’: “If this policy is adopted, it would mean that there could be two Americans receiving the exact same benefits, but one American may be taxed and one wouldn’t, and the only difference would be one of them being a member of a union. This is unseemly and unfair, even by the standards of Obamacare.”

Austin Frakt mulls over what the ultimate employer “responsibility” (i.e mandate) could be in the health overhaul proposals, and concludes: “I don’t like the Senate’s employer provisions relative to those of the House, but how bad is it in absolute terms? I don’t think it is that bad. The minimum benefit standard is lower than the House’s but not tremendously lower (60% vs. 70% of actuarial value). Though there are loopholes that afford employers some wiggle room, it is a lot less wiggle room than they have now.”

Heritage’s Kathryn Nix argues that the Office of Personal Management, which oversees the Federal Employee Health Benefit Program, shouldn’t  take on the added responsibility of “sponsoring health plans to compete against private health plans in every state in the nation” in the Senate proposal.  She says that the FEHBP’s responsibilities shouldn’t change as proposed under the Senate bill: “[it] works because OPM plays the neutral role of an umpire: federal employees choose the private plan they like from a wide variety of different plans, all of which compete against each other to attract the most enrollees. The federal government provides its employees with a defined contribution towards their health costs, and it doesn’t micromanage their choices.”

A special election in Massachusetts has some worried about losing a long-time Democratic vote in Congress: the late Edward Kennedy held the Senate seat for decades. 

The Washington Post’s Ezra Klein predicts that it won’t matter for the final health reform vote if Martha Coakley, the Democratic candidate, loses the election. According to Klein, even if she loses, it would take a while for Scott Brown, her opponent, to be confirmed and sworn in.

And Hot Air’s Ed Morrissey, looking at reports that longtime Senator Russ Feingold, D-Wisc., was heckled over the issue of health care at a recent constituent meeting in Wisconsin, says: “The town hall meeting phenomenon has not dissipated at all.  Perhaps the media isn’t giving it quite as much coverage as before — and perhaps Democrats aren’t holding town-hall meetings because of the certainty of this kind of reception.  But that is bigger news than whether Harry Reid retains his position as Majority Leader, at least in terms of policy and governance.”

Wednesday, January 13th, 2010

Election Year Meets Health Care Debate

Pundits and bloggers are closely watching how the health overhaul debate could affect local races across the nation.

The brand new political Web site founded by Tucker Carlson, The Daily Caller, is covering health care politics, reporting today that “President Obama’s chief of staff, Rahm Emanuel, said Monday [on MSNBC's Daily Rundown] that the White House has inadequately communicated with Americans about health-care reform.”

DC’s Jon Ward writes: “Pressed on why poll numbers show such low support for the administration’s reforms, Emanuel said that “part of it is the message not getting through, part of it is people not watching the legislative process very good.”

The Washington Independent’s David Weigel writes that Rep. Larry Kissell, D-N.C., is faring well so far in a reelection campaign in his swing district, in part because of his ”no” vote: “Kissell’s advantage, according to Public Policy Polling, is his vote against the health care bill.”

And Huffington Post’s Glen Johnson and Liz Sidoti report: “The race to succeed the late Sen. Edward M. Kennedy has turned into a proxy battle over the fate of President Barack Obama’s health care overhaul.” 

Elsewhere, others continue to look at the shape of a final bill.

The Washington Post’s Ezra Klein says his sources are tracking with E.J. Dionne’s column Monday, where Dionne reported that the final health bill are likely to dump the public option entirely, but opt for a national health insurance exchange.  Klein adds, “The precise mix of insurance regulations might shift as well, as the House has a stronger set than the Senate does. But broadly speaking, people aren’t expecting much in the way of surprises.”

Heritage’s Rob Bluey reports on comments from AFL-CIO President Richard Trumka opposing the ‘Cadillac tax’ and notes there are other issues that could strain relationships with labor leaders:

The tax issue is just one factor that could sour Big Labor’s relationship with the White House. Trumka clearly favors the more liberal House bill, which includes a public plan and employer mandate. But for House and Senate leaders to strike a deal, lawmakers would almost certainly need to make concessions that agitate leaders like Trumka. Other major issues up for negotiation include penalties of an individual mandate, expansion of the Medicaid entitlement and taxpayer funding for abortion.

Merrill Goozner doesn’t like the ‘Cadillac tax’ either.  He looks at the number of Americans likely to be affected by the tax and concludes, “If the Democrats adopt this plan, a political disaster of epic proportions awaits them.”

And on a different note, Insure Blog’s Hank Stern wonders if the Amish will receive a religious exemption to the individual mandate, noting that they purchase vehicle insurance.

Tuesday, January 12th, 2010

Wonk It Out

Congress hasn’t returned to the Capitol yet, but bloggers have been busy detecting the fault lines in the House and Senate health overhaul bills.

Hot Air’s Ed Morrissey looks at a news report that House Democrats gave a chilly reception to the the idea of including the Senate’s ‘Cadillac tax’ in the  final  health overhaul bill, and predicts trouble if different source of funding  comes into play: “It’s another opportunity to kill the bill, and given the political damage the last round did to red-state Democrats in the upper chamber, Harry Reid may not be able to bargain his way around those cloture votes again.  The unions may wind up killing the bill, thanks to their self-serving opposition to paying taxes for a program for which they have been lobbying for months.”

Over at the New Republic’s The Treatment, Peter Harbage argues for more funding in the Senate bill: he says states need a $1 billion fund to keep an eye on potential price gouging.  The provision currently exists only in the House version.

The New York Times’ Catherine Rampell looks at new employment numbers released today, noting, “Even as overall payrolls continue to plummet, the health care industry keeps truckin’ along.”

Politico’s Ben Smith interviews MIT economist Jonathan Gruber over controversy that Gruber had a contract with HHS during the time he made public comments supporting health overhaul plans.

And since it’s Friday, how about some multimedia on your favorite health wonks?

The talk of the beltway health policy world this week was revelations surrounding Office of Management and Budget Director Peter Orszag’s personal life. CNN’s Jeanne Moos investigates whether women of the world think nerdy is sexy:

Cato’s Michael Cannon has a podcast that focuses on if there are price controls under proposed health reform legislation.

And The Washington Post’s Ezra Klein and White House Communications officer Linda Douglass appeared on The Colbert Report to talk health care:

The Colbert Report Mon – Thurs 11:30pm / 10:30c
Drag Me to Health – Ezra Klein & Linda Douglass
www.colbertnation.com
Colbert Report Full Episodes Political Humor Economy

Friday, January 8th, 2010