Obama Indicates Support For National Exchange -- Excise Tax Scaled Back?

[jefferson_dem]

Obama Indicates Support For National Exchange?
by slinkerwink

Obama Indicates Support For National Exchange? Tue Jan 12, 2010 at 03:36:35 PM PST

This AP story,which just came over the wire, has these bits of news which I've excerpted below:

Officials said Obama has indicated support for a national version of the exchange — a clearinghouse where consumers could shop for health coverage. He also is signaling support for ending the decades-old antitrust exemption enjoyed by insurance companies. On those two issues the president is siding with House Democrats over their Senate counterparts.

The legislation passed by both chambers before Christmas is similar in many respects, including expanding Medicaid and imposing a first-time requirement for almost everyone to purchase insurance. Both bills would extend health coverage to more than 30 million uninsured Americans over the next decade.

There's also this bit of news---the excise tax may be scaled back and the Medicare tax would be increased on those making more than $200,000 individually and $250,000 as couples.

Negotiators are considering extending the Medicare payroll tax, which now applies only to income from wages, to cover some of the investment earnings of couples making more than $250,000 a year, and individuals earning above $200,000. That could make up lost revenue from dropping the high-wage income tax and scaling back a proposed tax on high-value insurance plans, which is strongly opposed by organized labor and House Democrats.

There's also a lot more about what the labor unions specifically discussed with the WH:

Obama met with union leaders Monday, and one union official familiar with the discussions said labor leaders and White House staff also explored the possibility of exempting or delaying health plans covered by collective bargaining agreements from being subject to the tax. They also discussed possible carve-outs for state and government employees, many of whom are unionized.

But some union officials are concerned about any compromise that would appear to give unions special treatment. They want a fix that protects both union and nonunion middle-class workers from paying higher taxes on health plans.

I'd prefer it if they completely dropped the excise tax, or indexed it differently by level of income or based on the benefits of the plan if the plan is truly overly generous like those at Goldman Sachs. It'd still be politically difficult to deal with if the excise tax isn't completely dropped and that's what Democrats will have to deal with if they favor this over the tax on the wealthy.

In any case, it's good news that Obama indicates support for the national exchange. In my post tomorrow, I'll go into more detail about why the national exchange is vastly superior to state-based exchanges.

http://www.dailykos.com/story/2010/1/12/824444/-Obama-Indicates-Support-For-National-Exchange