Bob Herbert writing in the New York Times December 29 outlines the real impact and assumptions surrounding the 40% tax on so-called Cadillac health plans contained within the Senate version of health care reform. This tax, the revenue from which is based on absurd assumptions will adversely affect more and more middle class families in the future as employers (none of whom will actually pay the tax) reduce benefits to stay under the arbitrary cap set by this legislation.
This is just one of the several less than honest ways in which this legislation seeks to change health care and how it is paid for.
As I have said many times on these pages, the “savings” generated in all of this have little to do with the millions of Americans who have health insurance, especially those with coverage through an employer. Rather, at least for the next ten years, the combination of changes including those affecting Medicare and Medicaid, the cost shifting, new mandates and more combine to increase costs for already covered Americans. In addition, the increased obligations for the states through expanded Medicaid benefits will translate into higher local taxes for residents in those states (except Nebraska of course).
As Herbert notes, a little honesty would be nice.