A panic attack over healthcare tab
June 11, 2009
Behind the open brawling over how to rebuild the nation's health care system, another struggle is beginning to erupt: Who should pay the eye-popping bill?
Written by Noam N. Levey and Janet Hook , The LA Times
WASHINGTON – Behind the open brawling over how to rebuild the nation's health care system, another struggle is beginning to erupt: Who should pay the eye-popping bill? President Barack Obama and his congressional allies have pledged to come up with more than $1 trillion over the next decade to offset the costs of what would be the biggest health overhaul in generations. But the prospect of new taxes, new fees for businesses and cutbacks in other government spending has set off a furious behind-the-scenes battle. For example, when congressional Democrats started warming up to the notion of curbing the once-sacrosanct tax break for employer-provided health benefits, the labor movement went on the air to blast proponents of the idea. Obama, who at a White House meeting on Wednesday urged a bipartisan group of senior lawmakers to press ahead with health care legislation, is stepping up his efforts to build momentum behind the legislative push. He travels to Wisconsin today for a town hall meeting focusing on health care. Underscoring the difficulties, senior administration officials said last week that the $2 trillion in savings promised by a health care industry group working with the White House would not pay for an expansion in coverage. A recent poll by the Kaiser Family Foundation found that solid majorities of Americans favor some proposals for funding a health overhaul, such as higher taxes for families making more than $250,000 and additional taxes on cigarettes and alcohol. Obama sparked an immediate backlash when he laid out plans in his budget to raise nearly $300 billion over the next decade by cutting payments to insurers that contract to provide Medicare to seniors under the so-called Medicare Advantage program. Others rebelled at a second Obama proposal to come up with an additional $300 million by reducing the deductions that high-income taxpayers could take on charitable contributions, home mortgage interest and state and local taxes. Congressional ideas have fared little better, with lobbyists fanning out on Capitol Hill to challenge proposals to levy fees on businesses that don't provide health insurance and to raise taxes on liquor and sugary drinks.
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