Although details have yet to be released, officials close to this week’s day-long meetings on health care reform report the White House and Congressional leaders have agreed to tax high-cost health insurance policies.
Officials did not immediately provide details of the tentative agreement, but it is expected to include an increase in the thresholds at which policies are hit by the tax, reports the New York Times.
The so-called “Cadillac tax” is reported to be a fundamental financing source in the latest battle on health care reform legislation, and an issue close to President Obama.
The Senate bill, which has been criticized by House Democrats and organized labor, states that the plan is to impose a 40% tax on the amount of policies for individuals above $8,500 and family plans above $23,000.
House Democrats and organized labor groups have been resisting the tax, which they say will hit many union-sponsored health plans and force an increase in medical expenses for many middle class families.
Sources close to the talks report that some Congressional leaders continue to emphasize that no final agreement has been reached
One of the biggest differences between the House and Senate versions of the legislation is how they would pay for the nearly $1 trillion, 10-year cost. The excise tax is the biggest new revenue-raiser in the Senate bill. The House bill would impose an income surtax on individuals earning more than $500,000 and couples earning more than $1 million, reports the New York Times.
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