The Health Care Blog: The Case for Taxing “Cadillac” Healthcare Coverage

By CLAYTON MCWHORTER With President Obama’s plan for healthcare reform recently being dealt a tough blow by the Congressional Budget Office over soaring federal deficit projections, I am beginning to wonder if it is time for the President to modify his stance against taxing “Cadillac” healthcare coverage offered by employers. It’s no secret what Senator Max Baucus, the Democratic Chairman of the Senate Finance Committee and one of the most powerful people in the healthcare reform debate, thinks President Obama should do. Senator Baucus has been a vocal advocate of taxing healthcare benefits. He recently told reporters that taxing employer-sponsored benefits is “the best way to raise money for an overhaul of the healthcare system.” He has also been somewhat critical of President Obama’s decision to not tax healthcare benefits by saying, “Basically, the president is not helping us.” Read More