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.