Wednesday, October 14, 2009

Nancy Pelosi wants to tax ‘Cadillac Insurance Plans’

A few house Democrats including Nancy Pelosi want to tax health insurance plans based on their cost rather than their contents. They want to tax any health insurance plan that costs $8000 for an individual, or $21,000 for a family.

No dispensations will be given for the difference between the costs of an individual plan or a group plan, or will there any for the age of the insured. No dispensation will be given for how many people will be in the “family” plan.

Now to put this into realistic terms, any individual that pays $666 a month will be considered to have a Cadillac plan. Any family that pays $1750 a month will be considered as having a Cadillac plan.

It has been reported that “most” house Democrats don’t approve of this plan, I have to wonder if their collective dismay has more to do with the plight of their constituents, or they possibility of being labeled as having “Cadillac plans” themselves.

To give you a practical example of how this can affect an individual plan, my insurance plan costs me $430 a month. It isn’t extravagant, it doesn’t have a bunch of bells and whistles, it has a high deductable, and then 100% payment after that. At my age this plan increases almost $100 a month every year. So within a maximum of 3 years, although I haven’t changed one thing about my coverage, I will be branded with having a Cadillac plan based solely on cost. Does this make sense?

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1 comment:

Janie Lynn said...

I have a great plan, being a single person working for a huge company, I pay about a hundred bucks a month. I'm quite happy with it. But um ... I'm not going to be happy when my premiums start going up OR - when my 23 year old daughter who is going to school and doesn't have a job right now is forced to buy insurance or be fined!
Let's make the majority unhappy and broke to meet the philanthropic urges of some of the wealthiest legislators out there - and to help some people out there who genuinely need it and a bunch who don't. I'm tired of this already. Really.