webb
Health Care Excise Tax
A raw deal for workers in self funded employer plans
The health care reform bill H.R. 3590, which passed the Senate on December 24, 2009 contains in Section 9001 of Title IX a new excise tax on high cost employer sponsored health coverage.While some have described this tax as being aimed at 'cadillac health plans' a closer look at the bill reveals it is a death threat to health care coverage for those whose employer's sponsor self funded plans.The 40% excise tax this bill imposes on costs in any month of over $708.33 for any single worker and $1916.67 for any family will quickly lead such employers to terminate the health coverage of their workers covered by such plans. Any worker or family member with a hospitalization would easily incur costs which exceed the monthly cap. In any month the cap is exceeded the 40% tax is imposed on the amount paid for health care for that worker which is over the cap.Senator's Jim Webb and Mark Warner (both D-VA) voted for the bill with this provision in it. If you are a Virginian in an employer sponsored self funded health plan, you might want to let your Senator's know that you oppose this particularly foul pernicious section. (The links are to their web site email form.)




