Cadillac Plans (always wondered what that meant)

http://www.nytimes.com/2010/01/16/opinion/16sat1.html?partner=rss&emc=rss&src=ig

Published: January 15, 2010

The agreement between the White House, Congressional leaders and labor unions over taxing high-priced health insurance policies is a reasonable solution to an issue that was threatening to derail health care reform. The agreement treats unionized workers far more favorably than nonunion workers, the price for the support of important Democratic constituencies. But it would preserve the tax’s crucial role in slowing the rise in health care costs for decades to come.

When the Senate voted for the tax on high-priced employer-sponsored health insurance policies — “Cadillac plans” — labor leaders and many House Democrats complained that the tax would penalize middle-class people who had plans that were hardly lavish. They much preferred the House approach: a so-called millionaire’s tax, a surcharge on earnings above $1 million a year for couples.

I read that this morning and got so incensed that I clicked off the NYT site. The "I don't have good insurance so you shouldn't either" excise tax won't do a thing to "slow the rise" in health CARE costs. It MAY slow the rise in health insurance PREMIUMS, with the difference being made up with out of pocket costs.

for employers. By shifting medical costs to employees and retirees.