^When did you hear that? The last time Obama was asked, he said all options are now on the table.

 

So if premiums are taxed now. I wonder if people will now gravitate to the cheaper plans where most are really just HSA type with coverage for major illness.

At UnitedHealth here there are plans are being pushed to that scenario. In fact there are 2 plans for HSA type that one offers a little more coverage and the other being a very limited stripped version. $$$ being a key factor.

I'd like to see how this all pans out for the, "Wealthy and Healthy" and the "uninsured" that really don't want insurance to begin with. I'll keep an eye on those trends.

Oh as for taxing benefits when you get ill. I believe Mass already does that. I know in NY they do because they just recently up'd the tax. In CT, Gov Rell has been thinking about doing the same but is on the fence waiting to see what Obama is going to do.

 

What do you mean by taxing benefits when you get ill?

Are you talking third party sick pay, or a tax when an insurer pays out benefits? Third party sick pay has been taxable for years, the only way around that is if the employee pays the insurance premium.

Found this on MSNBC today A tax on health benefits would affect only those with pricey health plans. The idea would be to tax as income the portion of health benefits worth more than a specified limit. Officials are considering several options, including one that would set the limit at $17,240 for family coverage and $6,800 for individuals.

Plans worth more than that would be taxed; those worth less would see no increase.

Most people I know are now contributing a fair amount to their health insurance plans and are not getting health insurance worth the value shown above.

We just started not having to pay tax on our portion of health insurance premiums, Section 125...wonder how that fits in with the plan. Lots to here

 

[URL=http://www.bloomberg.com/apps/news?pid=20601103&sid=aDvu77pZr7k4]Unions

 

Thanks Lainey and zdave87. I knew that the proposals I'd seen were not going to tax health insurance premiums below a certain threshold but I couldn't find the references. Of course, what Baucas proposes in one house and what later comes out of a conference committee could be quite different.

 

This is happening now and recently NY state just upped the tax. In New York State its called NYHCRA surcharges or Health Care Reform Act (HCRA).

http://www.health.state.ny.us/nysdoh/hcra/hcrahome.htm

HCRA is a major component of New York State's Health Care financing laws which governs hospital reimbursement methodologies and targets funding for a multitude of health care initiatives. The law also requires that certain third-party payors and providers of health care services participate in the funding of these initiatives through the submission of authorized surcharges and assessments.

Services subject to HCRA surcharges include general hospitals, hospital-based extension clinics, comprehensive diagnostic and treatment centers, diagnostic and treatment center extension clinics, diagnostic and treatment centers that provide ambulatory surgical services, and clinical laboratories.

Payor Surcharge Rates
http://www.health.state.ny.us/nysdoh/hcra/...harge_rates.pdf

Funny it states "targets funding for a multitude of health care initiatives" but can't find anything on the website that says where this funding goes to.

Found some other info "HCRA addresses a broad range of issues, including mechanisms for hospital reimbursement, graduate medical education finance, and subsidies for care provided to the uninsured. The new legislation enacts a number of major changes to increase funding for health care and attempts to increase access to health insurance."

http://www.ibo.nyc.ny.us/newsfax/nws58healthreform.html

I'll ask some people here what they call it in Mass and what gets taxed to help pay for it.