One of the largest problems facing health care reform is paying for the expansion of coverage. Here is a look at where and how the Senate Finance Committee hopes to raise revenue.
It remains to be seen if the assumptions are correct and consider the likely reaction by employers and others. For example, it is hard to imagine that any organization will continue a plan that subjects it to the excise tax.
Excise tax on high cost coverage – $205 billion
Taxation of retiree drug subsidy paid to employers – $4 billion
Annual fees on insurers, drug companies, and medical device companies – $93 billion
Limit FSA contributions – $14.6 billion
Remove OTC drugs from FSA eligibility – $5.4 billion
Raise medical expense income tax deduction hurdle to 10 percent – $28 billion
Increase the HSA non-qualified use penalty – $1.3 billion