Democrats shy away from health care tax: Rifts threaten Obama deadline

The Washington Times ^ | July 9, 2009 | Jennifer Haberkorn

[Scanian]

Cracks in President Obama's health care reform plan formed Wednesday as his August deadline appears to be slipping away amid angst from Democrats over taxing employer benefits to help pay for the $1 trillion makeover.

Top Democrats, including Sen. Christopher J. Dodd of Connecticut, who is helping craft the measure, and Sen. Charles E. Schumer of New York said the idea isn't politically viable.

"Fifty-three percent of my constituents would be taxed under that proposal in Connecticut," said Mr. Dodd, who is acting chairman of the Senate Health, Education, Labor and Pensions Committee.

"And I'm not alone. There's a lot of states where the numbers are that high and I suspect an awful lot of Republicans would be against that proposal as well - not just Democrats. So we're going to have to find another option."

But Finance Committee Chairman Max Baucus, Montana Democrat, said the concept is still on the table. Sen. Kent Conrad, North Dakota Democrat, said all options are still being considered. Those include taxing the most expensive health care plans - those valued at more than $25,000 - or sugary drinks or the highest income brackets. He said nothing has been even close to finalized besides cuts to Medicare and Medicaid.

The bill is likely to total about $1 trillion, and committee members are still looking to cull about $320 billion in politically viable payment methods.

The White House did get some help with the bills price tag Wednesday. Four hospital associations said they will forgo $155 billion in Medicare and Medicaid payments over the next decade.

Vice President Joseph R. Biden Jr. announced the deal with the American Hospital Association, the Community Health Systems, the Catholic Health Association and the Federation of American Hospitals.

"Our hospitals are cracking under the weight of providing quality health

[C210N]

Fifty-three percent of my constituents would be taxed under that proposal in Connecticut

Now, if we can get it down to forty-nine point nine percent, we'll have a deal!

[jtill]

Four hospital associations said they will forgo $155 billion in Medicare and Medicaid payments over the next decade.

Do you honestly believe that these hospitals are going to give up profits over the period of a decade, or do you believe that they will do one of two things:

(1) Lay-off RN's and other necessary personnel to cut costs; or (2) Refuse to care for Medicare and Medicaid patients. Think about it!