Dems give insurers tax break in final bill

The Washington Times ^ | December 19, 2009 | S. A. Miller

[jazusamo]

Senate Democratic leaders say last-minute changes to the health care bill include giving nonprofit health insurance companies an exemption from the excise tax on insurers, a revision pushed by Sen. Carl Levin, who is a major recipient of campaign contributions form mega nonprofit Blue Cross Blue Shield.

The excise tax or fee on health insurance companies was expected to bring in $6.7 billion to help pay for the nearly $1 trillion bill, but the complete exemption for nonprofits sought by Mr. Levin, Michigan Democrat, would cut the revenue in half.

"The health insurance fee proposal in the pending Senate bill does not distinguish between the true nonprofit insurance companies and most profitable insurance companies in the country, and I've been working to fix that because I think that distinction is important," Mr. Levin said in written statement to The Washington Times.

Nonprofit health insurers -- which insure about 45 percent of Americans and include multistate companies such as CareFirst Inc. and Health Care Service Corp.-- are virtually indistinguishable from their for-profit competitors.

The insurance premiums paid to nonprofits are often as high as those paid to for-profit insurance companies.

The top executives at nonprofits also take home pay checks just as huge as that of their for-profit counterparts.

[jazusamo]

A legal analysis of the Levin amendment for Wellpoint Inc. cited a potential violation of the Constitution's uniformity clause that commands that "Duties, Excises and Imports shall be uniform throughout the United States."

The Democrats don't give a hang for the Constitution.

[goldstategop]

If the Democrats cared about the Constitution, they wouldn't be rushing to get this Mother Of All Power Grabs to the White House.

"Show me just what Mohammed brought that was new, and there you will find only things evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelogus

[Common Sense 101]

“The excise tax or fee on health insurance companies was expected to bring in $6.7 billion to help pay for the nearly $1 trillion bill...”

Does the idiot that wrote this story have any idea how ridiculous this sentence is? Hey moron, divide $6.7B by $1 trillion...

[marsh2]

As a former group insurance underwriter, I can confirm that there was little profit on the group medical care insurance book of business. Profits were made on life, long term disability and other forms of insurance where premiums were available for investments and not immediately paid out in claims. The tax on insurers will simply be put into the premium calculation and passed on to the consumer.

[VOA]

bump

[jazusamo]

Thanks...This is just another payoff by a Dem that receives campaign donations from nonprofit insurance companies. My question is why are nonprofit companies allowed to make political donations?

[muawiyah]

The reporter forgot to add that all nonprofit insurers, PLUS other nonprofit organizations (such as county, municipal and university hospitals), Indian tribes, federal government programs, military and VA services, and government funded medical research ~ CONTROL well more than 50% of the medical industry exclusive of pharmaceutical companies.

For profit private health care insurers are a very minor portion of the business.

Many of them charge much less than the nonprofit organizations. It's worth noting that private insurers cost less than the government's own medical organizations ~ recalling the days when military retirees AND their dependents received services directly from the government. That was ended and dependents were forced to use private companies because they were less costly.

I don't think we lack for information regarding how nonprofits and the government provide high cost medical services ~

[muawiyah]

Corporations are not allowed to make donations. However, employees and officers at any corporation are allowed to create a PAC, contribute money to the PAC, and the PAC makes contributions to the politicians.

[jazusamo]

Thanks, and I forgot that many employees can give their own personal donation which many do with people like Murtha.

[NoLibZone]

The giant sucking sound is insurance company jobs headed to the newest Blue State.

[SunkenCiv]

giving nonprofit health insurance companies an exemption from the excise tax on insurers, a revision pushed by Sen. Carl Levin, who is a major recipient of campaign contributions form mega nonprofit Blue Cross Blue Shield

Which will mean, higher charges for the same services.

[hennie pennie]

wow.....did you see this?

[grellis]

If you would like to be added or dropped from the Michigan ping list, please freepmail me.

BCBS a non-profit, riiiiiiight. They make money hand over fist through Accident Fund, enough to pay for their multimillion dollar expansion on prime riverfront property here in Lansing.

I hate that we are insured through BCBS, knowing they help Der Commie-sar stay in power.