Senator Max Baucus's recently introduced health care bill had a provision to tax these golden cadillac health plans at a 35% rate. It's like the luxury tax for sports team like the Yankees who exceed a certain level for player salaries. The golden cadillac plan is defined as costing an individual $8000 per year or $666/month. Considering that I can get an individual plan in New Jersey, a state with high medical costs, for $350 for a 35 year old, this isn't just a cadillac plan, it's a Hummer-sized plan.
When these golden cadillac plans were introduced to the nation, the impression was that these were the types of plans that greedy executive who don't like ice cream or warm puppies have. Regular people don't have these plans but people who get paid bonuses that rival the GDP of Pacific Island nations have these plans!
In reality, the richest plans in the country are negotiated by unions who have become very good at getting incredible health care coverage for both active and retired groups. I was really hoping that the Obama administration knew that and would be prepared. Apparently they had absolutely no idea. The AFL-CIO reacted to the news with chants of "Bull sh!t" and went absolutely ballistic. Senators Kerry and Rockerfeller are decrying the increased tax on the middle class. Turns out these golden cadillac plans are mainly bought by the Democratic labor base. Democrats are spinning trying to figure out where else they can get the $215 million that this tax provides. I'm tempted to request the cost of Congress's health benefits to see if they are also golden cadillac plans. Given the cost of east coast health care, the age of Congress, and the benefits, they very well might be.
What disappoints me most is the idea that taxing these plans might be a good idea is getting put in the corner. Some article have called golden cadillac plans a myth and the savings might not be there. However, it's become increasingly clear that shielding consumers from true costs of medical care is not a good idea. Generally, unionized groups such as teachers and state workers have high health care costs and I don't think that they are all sicker than the average population. These golden cadillac plans were created as part of salary negotiations. If unions scale back to Ford Taurus health plans and members get higher wages, tuition waivers, gym memberships, or fruit baskets on all 8 days of Hanukah, it doesn't have to be a salary cut.
Golden cadillac plans were thought to lend to higher health care costs before we found out who actually has these plans. The intent was for those who purchase twice the insurance that they need would subsidize those who have none. It's time to stop pimping and starting to share the love which is the whole idea behind insurance.
When these golden cadillac plans were introduced to the nation, the impression was that these were the types of plans that greedy executive who don't like ice cream or warm puppies have. Regular people don't have these plans but people who get paid bonuses that rival the GDP of Pacific Island nations have these plans!
In reality, the richest plans in the country are negotiated by unions who have become very good at getting incredible health care coverage for both active and retired groups. I was really hoping that the Obama administration knew that and would be prepared. Apparently they had absolutely no idea. The AFL-CIO reacted to the news with chants of "Bull sh!t" and went absolutely ballistic. Senators Kerry and Rockerfeller are decrying the increased tax on the middle class. Turns out these golden cadillac plans are mainly bought by the Democratic labor base. Democrats are spinning trying to figure out where else they can get the $215 million that this tax provides. I'm tempted to request the cost of Congress's health benefits to see if they are also golden cadillac plans. Given the cost of east coast health care, the age of Congress, and the benefits, they very well might be.
What disappoints me most is the idea that taxing these plans might be a good idea is getting put in the corner. Some article have called golden cadillac plans a myth and the savings might not be there. However, it's become increasingly clear that shielding consumers from true costs of medical care is not a good idea. Generally, unionized groups such as teachers and state workers have high health care costs and I don't think that they are all sicker than the average population. These golden cadillac plans were created as part of salary negotiations. If unions scale back to Ford Taurus health plans and members get higher wages, tuition waivers, gym memberships, or fruit baskets on all 8 days of Hanukah, it doesn't have to be a salary cut.
Golden cadillac plans were thought to lend to higher health care costs before we found out who actually has these plans. The intent was for those who purchase twice the insurance that they need would subsidize those who have none. It's time to stop pimping and starting to share the love which is the whole idea behind insurance.
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