Sen Burr talking about his health plan
February 24, 2014 1 Comment
One point to highlight. From around 10:30-13:30 minute mark they discuss the tax treatment of employer sponsored insurance. Senator Burr correctly responds that capping the tax exclusion of ESI and the cadillac tax are policies with similar intent. However, the key question is what is the level or magnitude of the change Senator Burr proposes.
He invokes a private score of his plan showing savings of over $1 Trillion as compared to the ACA. That is consistent with the original proposal put forth. However, they backed off within 36 hours of release as conservatives got upset realizing that the $1.4 Trillion savings came primarily from what is a $1.1 Trillion tax increase (capping the tax exclusion at 65% of an average plans cost) on those with employer sponsored health insurance (I think it is a good policy and have long called for such). Now they characterize it as capping the tax exclusion at 65% of high cost plans. These sentences sound very similar but have very different implications. The revised language (65% of the cost of high cost plans) has still never been scored.
Essentially Senator Burr is using the original score that contains a very aggressive policy that conservatives hated because it is a tax increase, while using language that is quite different in impact and an impact more akin to the Cadillac tax.
Just a bit of insight into how difficult it will be for conservatives to marshall votes for any health reform proposal that is consequential.
This link contains 12 posts I have written about this newest and Senator Burr’s other health plans if you want to know more.