On the tax on "Cadillac Plans"

[grantcart]

First it should have been called Rolls Royce plans - the amount it kicks in is a staggering $ 24,000.

Unions (of which only 25% have such plans) will now have some time to renegotiate the amount OVER the $ 24,000, a simple exercise because plans that over are probably over a few thousand and that can be shifted to 401K or other plans.

The reason that the tax is important is not to raise revenue but control price.

The bill allows plans to increase at inflation +1%. The point is to stop insurance companies from increasing cost of plans over the rate of inflation.

The effect then is to establish a ceiling of the GNP that restricts insurance companies from exceeding.

If you believe that insurance companies should be able to increase plans at a rate of inflation plus +1% then you are saying that there is no practical limit to what insurance companies should be limited to, that the percent of GNP for health care is an unlimited percent.

If you think about it even the +1% over inflation is too high.

[Cha]

1. Thanks for this, grant.

[HughMoran]

2. You know it's funny, the family plan at my (very small) company is $36k/year

Of course, the reason the company owner and I are in favor of this reform is that the exchanges will get our little company rates closer to $15k/yr. Heck, the plan that covers just me and my 2 kids is $24k/yr - insane huh? Company owner has a pre-existing condition, so she can't even change insurance companies. The current system is so insane - it infuriates me that people here want to "kill the bill". How about "kill the bill killers"?

[sandnsea]

3. And I'm in a state pre-existing pool

With only sick people and mine & hubby's full premium would be about $1100 a month. I have $500 deductible, free preventive exams, free annual exams for everything related to my illnesses, $10/$20/$40 on prescriptions. We've never been turned down for anything, everything has been paid.

And this is the horrible subsidized insurance, and with only sick people, that everyone opposes.

How can mine cost less than yours and be full of only sick people?

That's why I think something has to be done with this expensive policies and if we don't want to get into a huge regulations fight, then the tax is the next best method of getting a handle on them.

I hope there is something for you soon.

[cliffordu]

6. Dayum. That's a lot of money.

I hope this thing passes.

[TicketyBoo]

4. Do you have a link?

I had read or heard somewhere that it was $8,400.

Am relieved to know if that isn't the case.

[berni_mccoy]

5. Cadillac was chosen for one reason and one reason only. And everyone here knows why.

[TicketyBoo]

7. I don't.

Unless it's because it's GM's top-of-the-line?

Still doesn't really explain it, though.