October 18, 2009
Posted: October 18th, 2009 11:38 AM ET

From
White House Chief of Staff Rahm Emanuel discussed health care reform Sunday on CNN's State of the Union with John King.
White House Chief of Staff Rahm Emanuel discussed health care reform Sunday on CNN's State of the Union with John King.

WASHINGTON (CNN) – As the debate over health care reform moves into a new phase, White House Chief of Staff Rahm Emanuel is defending one proposal to help finance the nearly $900 billion price tag for Democrats’ ambitious plans to restructure the nation’s health care system.

“This is basically one of the ways in which you basically put downward pressure on health care costs,” the top Obama aide said Sunday on CNN’s State of the Union. “The president believes . . . it is helpful in getting costs under control and it hits the insurance companies and the high expansive and expensive plans.”

The possibility of a tax on health insurance plans with higher premiums and better benefits is driving a wedge between Democrats and many labor unions who have been longtime political allies of Democrats. In addition to being concerned about a possible tax on so-called “Cadillac” health insurance plans, unions are also concerned that the final version of health care reform legislation will not include a public health insurance option.

Labor leaders believe a public option would help union workers in negotiations with employers in an environment where escalating health care costs have dampened wage increases. The unions oppose a tax on “Cadillac” plans because they fear it could affect their middle- and working-class members who have foregone wage increases in the past in order to receive high-end health care coverage as part of overall compensation packages during collective bargaining negotiations.

Filed under: Health care • Rahm Emanuel • State of the Union


DAVE   October 18th, 2009 4:49 pm ET

due to the heavy bias that obama has for all unions I am pretty sure that when it comes down to it these unions will be given a pass on there cadillac plans..... obama has more payoffs to give them and pretty sure the bailouts of the car companies which was quite lucrative for the auto unions is not enough to pay for all there votes...... the sad thing is they are directly responsible for the collapse of GM and Chrysler

Preston kathy   October 18th, 2009 4:17 pm ET

Kathy and preston i get a small pension from my union for working over 30 years my union took over fifty dollars extra from check every month so the union could pay there workers hdath care why do the workers always have to suffer im poor

Albo58   October 18th, 2009 3:59 pm ET

Does anyone seriously believe that Union members will have to pay a tax on thier health care under this administration and Congressional majority? Just like the auto bailouts, this administration doesn't do anything without Union approval. It's an absolute disgrace!

Henry Miller, Libertarian, Cary, NC   October 18th, 2009 3:56 pm ET

The philosophy of Democrats seems to be that, if you have money, they want it.

Rob   October 18th, 2009 3:33 pm ET

I agree with an earlier poster that rolling back the Bush tax cuts could possibly bring in a ton of $$$ to help pay for this. Wealthy people were doing just fine during the Clinton years, so there should be no whining about it.

I don't like the tax on "Cadillac" plans. I agree with the unions that such a tax would end up diluting everyone's benefits, especially for those who have given up wage increases.

What I don't understand is why we feel like everything we do MUST be based on capitalism. I am fine with being a capitalist society when it comes to conducting business, but I think basic human rights and services need to be exempted from that. Health care, police, fire, etc. These things SHOULD be guaranteed to all legal citizens. Because otherwise what it says is that if you make more money you are more worthy of getting good health care than someone making minimum wage. In our country, someone working at Burger King is not as entitled to get cancer treatment as say a CEO of a Fortune 500 company. That is just wrong. Providing health care for all should transcend above big business and worrying about profits. People should not have to worry whether they will be forced to die because their insurance provider thinks they are too risky to cover. Makes me sick really.

Ed   October 18th, 2009 3:10 pm ET

Democrats want a competing government healthcare plan, and at the same time want to tax that competition's higher plans? This would appear outright illegal and anti-competitive.

kaleto   October 18th, 2009 3:04 pm ET

Make no mistake, any "reform" coming from the democrats will cost hardworking Americans big time. Healthcare will only be free for illegals and those who don't work; the rest of us will foot the bill.

And that bill is going to be HUGE. They're lying when they say it will be "deficit neutral". They assume they'll be able to save money by curtailing Medicare abuse (so why haven't they been doing this all along????), but any government-run plan will be ripe with fraud. They also aren't counting the costs incurred more than 10 years out. The TRUE cost over 10 years is estimated to be $2,000,000,000,000!!!

That means every man, woman and child in the U.S. will be paying at least $667 every year for 10 years. How's THAT for a stimulus package!

Bernie   October 18th, 2009 2:55 pm ET

I thought the objective was to give us all 'adequate' health care.

A tax will only hinder the process. Currently, we consumers have only the option of the reduction of benefits and higher co-payments that is associated with a lower-cost healthcare insurance plan.

If taxation is the cure, then our Federal lawmakers should be paying the heaviest tax for their 'Cadillac' health care package and consequently be paying the government for their posts in Congress.

Currently, many tests are repetitive or unnecessary due to incomplete medical history at the time of treatment. Many procedures are performed only to 'pad' the bill. The debate should focus on why there's so much waste in our health care system and on how to give both patients and their care givers a better comparative analysis of treatment methods so that the most effective, lowest cost treatment can be given. Information is key to both remedial approaches.

Computerized information systems must be implemented.

Ron Ft. Myers   October 18th, 2009 2:33 pm ET

Does this mean Obama and the other "enlightened' beings in Washington are prepared to pay taxes on their Cadillac plan that we taxpayers give them.

I'd be happy to get in the same group plan they are in and I'd even be willing to PAY for myself. Why can't Obama make that happen? It would lower my cost approximately $600.00 per month if not more. Tha's a simple solution for many already paying for health insurance.

mark   October 18th, 2009 2:32 pm ET

why tax success? its not the fault of the wealthy that they paid attention in school, got into and performed well at good college and then went on to have good careers. i just have an absolute problem with the gvt penalizing me because i work hard and have to subsidize somebody that sits on their couch not doing anything.

Reformed Republican   October 18th, 2009 2:21 pm ET

Since I make $175K+ and I'm single I would be willing to pay a "luxury tax" on my premo health inusrance plan to help cover the costs of a strong public option. What's a few bucks here or there anyway – I really would not be sacrificing anything anyway.

But remember – NO PUBLIC HEALTH INSURANCE OPTION, NO BILL!
If not, them my really great health insurance plan will cost twice as much in 5 years and in fact will start getting to expensive for even me to afford.

Here's a promise, not a threat – If congress can't pass health care insurance reform with a good public option then I'm gonna vote for someone who can.

Burns NH   October 18th, 2009 2:19 pm ET

Gee whiz,if you need and afford to pay for a better plan that suits your
families needs,go for it. You should not be made to pay for those
who don't have have those assets. We have a great country of very
generous folks who have helped time and time again those that are
less fortunate. This is not like Robin Hood stealing from the rich to
feed yhe poor, iits more like," stealing period".

ObservantOne   October 18th, 2009 1:58 pm ET

Why is everyone in such an uproar? We all know that Healthcare Reform would amount to increase taxes. With the majority of Americans out of work and/or working with reducted hours, how are they expected to pay for $900M healthcare bill, without taxing the remaining workers.

Personally if the President, Congress and the Senate would have focused as hard on creating jobs as they have on healthcare, we wouldn't have this issue. Oh, well, I guess it's a matter of priority, 2010 and 2012 is just around the corner. Wake up Americans!!!

Debbie   October 18th, 2009 1:54 pm ET

I don't think either side is right. Those with premium insurance should not be taxed because they have a better plan. And it will not help labor in public perception. What needs to happen is:
1. No exclusion for the insurance industry on anti-trust.
2. Exchanges, triggers, and/or public health should be available to keep the industry (doctors, insurance, hospitals) all in competition as part of the free market system.
3. Corporations must be held as non-human entities and taxed their share closing all loopholes.
4. Lobby loop holes must all be closed and a return to a balance of power to citizens and non-human corporations.

Maria - Proud Democrat   October 18th, 2009 1:14 pm ET

We need to hear a better definition of what a Cadillac plan is........as this TAX might impact a majority of Americans.

We can barely afford to pay for our insurance the last thing we need is another TAX on top of that.

Razorback   October 18th, 2009 1:10 pm ET

When McCain's campaign proposed taxing health insurance plans last year, all I saw on here was how Republicans were screwing the middle class by taxing their benefits. Now it's OK? And I have to get over it when my plan is taxed? Don't think so. I chose my profession partially because of the benefits which included a Cadillac health plan. Now the Cadillac plan is more like a Oldsmobile (better make that Buick since Oldsmobile was discontinued!) plan but with higher premiums and deductibles. It isn't given to me. I earned it as part of my compensation package. This will be another promise broken (remember "no new taxes on anybody making less than $250K?) and Democrats screwing the middle class. And no, I won't get over it-I and others in my situation will remember at election time!

Bill   October 18th, 2009 1:10 pm ET

I don't see how this is any of the government's business. At all. Whatsoever. In any respect.

rachel   October 18th, 2009 12:59 pm ET

What the heck is a cadillac healthcare plan? the ones congress has? or If I am fully covered is that a cadillac plan? This is ridiculous this is not the goldy locks and the three bears. If you have too much coverage you get taxed if you have no coverage you get tax...err penalized your coverage must be just right. Who is the government to decide what coverage is just right? I swear if my healthcare plan gets taxed or if my employer drops my healthcare if a public option goes through Barack will not get my vote that I sadly gave to him in the general and nobody who is up for reelection who supported this plan will get my vote. I can't afford to get taxed on my healthcare plan I gave up the raise I was due to stop layoffs and keep the healthcare plan I have.

CNN POST

JC   October 18th, 2009 12:57 pm ET

These people are absolutely clueless about healthcare, about business in general, yet in their arrogance, they make sweeping decisions about the marketplace that will affect us all. They refuse to accept Republican input and then declare that Republicans "have no plan". What a bunch of bold faced liars. They pull these ideas out of their behinds and say the plans will do this and that, when it's apparent by the results of their lame stimulus, which was supposed to limit unemployment and create jobs, that they have absolutely no idea what they are talking about. Keep it up, lapdog media. Keep telling the emporer what beautiful clothes he is wearing. You all are a disgrace.

Rick   October 18th, 2009 12:55 pm ET

Anybody think Emmanuel's comments translate into "reducing benefits"? If you keep your health insurance, it s a "Cadallac Plan" and you get taxed. If you give it up for less benefits, you don't get taxed. Hmmmm change you can believe in – transparency and honesty. Emmanuel or Blue Cross – which is worse?

Annie, Atlanta   October 18th, 2009 12:55 pm ET

I have a suggestion for our President. Roll back the Bush tax cuts for the wealthiest 5% and stop the wars in Iraq and Afghanistan. Good grief the Bush tax breaks alone amount to $1.5T, at least. That will more than cover a $900B plan, WITH a public option, of course. Personally I think we should just go to single payer, Medicare for all. I'd gladly pay extra in taxes for that plan, gladly.

Yahbut   October 18th, 2009 12:49 pm ET

If this administration wasn't spending so much money on everything in sight then we wouldn't have such a problem with the cost of health care. Of course there need to be some changes in health care, but not what has been suggested so far. Some people feel that we should have a government option because they think it is free and it is not. Nobody mentions that people on medicare do pay for it and have paid for others to have it for many years. Also, medicare is already rationing care. They do it in an interesting way. Let me give you an example: my husband's hemaglobin keeps dropping and every two months he has to have a shot of procrit. Doctors have worked extremely hard to find the cause for this and cannot. This all started after the treatments he had for cancer. Medicare rations when he is eligible for a procrit shot by changing the rules, which they have just done again. They do not say that he cannot have procrit they say that they won't cover it unless his hemaglobin drops down to a certain number and they have just lowered that number. He can have the procrit shot if we can pay anywhere from $1,000 to $3,000 for it. Of course it won't be long before we are in real financial trouble if we have to pay this price for procrit. I am not whining or complaining I am just trying to make it clear that rationing already exists and with all the plans that are being talked about rationing for people on medicare is going to get a whole lot worse.
Why are people always so jealous of people who have worked very hard and can afford things that many of us cannot? Everyone must remember that people who do not have health insurance actually do get health CARE.
We need to scrap all the plans that have come up so far and start all over again. This is not a game it is an extremely serious problem that must be solved with common sense and congress and the white
house are not solving it. If it takes until next year to get this right then so be it. This administration and congress need to be reminded that they are supposed to watch out for ALL the citizens of the United States not just a few who gave more campaign money to them.

as   October 18th, 2009 12:48 pm ET

Hilarious. Now that the unions are discovering that the "free" health care that they are entitled to is actually going to cost them money, they are in full revolt against it.

terry,va   October 18th, 2009 12:48 pm ET

To Think Again.....This country is based on work hard and get ahead. Get an education and earn more money. It is not based on giving to a socialist sate to support dead beats. Think again...we pay almost all of the taxes now. I'm not willing to give anymore of my money to those that force me to. I give to the truly needy not a bunch of government moneys that couldn't balance a check book.

Thinker   October 18th, 2009 12:47 pm ET

Democrats never met a tax they didn't like, and this is exactly what this is...a tax on folks making less than $250K. Only when the youth figure out they will have to pay for health insurance they may not want or need, will they wake up to the error of their ways. There is a reason the health care reforms will not be enacted until 2013. BHO wants another election cycle.
Democrats want the public option not because they want health care for all, they want the premiums!
Just wait, there is more to come....like forced IRA accounts for all employees, which includes confiscation of your 401K accounts and a limitation of what can be passed down to your heirs. Its all about the money!

gary davis Harbor Oregon   October 18th, 2009 12:46 pm ET

THE unions are wrong by exsepting the no wage increases to allow insurance companies the ability to raise premiums ,, is way short to the program that needs to happen .don't let the insurance industry dictate how we use health care ... stop being dumb ass's and let the insurance companies know WE ARE TIRED OF PAYING FOR BONUS'S TO CEO'S AND OTHER TOP INSURANCE EXECUTIVES AND STOCK DIVIDENS ON THE BACKS OF PEOPLE USING HEALTH CARE PROGRAMS..:)

terry,va   October 18th, 2009 12:42 pm ET

Taxes and more taxes on the middle class from the liar in chief.

C. Farrell, Houston, Tx   October 18th, 2009 12:35 pm ET

The health insurance industry has been exposed and anyone with common sense should be pleased to know what and why they are fighting so vigorously. They haven't been fighting in the interest of you and I but for their own outrageous profits.

ThinkAgain   October 18th, 2009 12:23 pm ET

Life, liberty and the pursuit of happiness.

No where in the Constitution does it say, "For only the wealthy".

ThinkAgain   October 18th, 2009 12:22 pm ET

The best ways to finance health care reform are:

1. Eliminate the FICA tax cap on income above $90,000. This would generate a huge source of funds. (Right now, no FICA is paid on individual income above $90,000.)

2. Change the top tax rate to what it was under Ronald Reagan: 39%. Right now, the top rate is 36%; people making higher incomes can afford to pay an additional 3%.

Are these "taxes on the rich?" Yes, they are. And the wealthy of this country can well afford it. After all, it's the least they can do for this country that has given them the opportunity to create their wealth in the first place.

John,Black Hills/SD   October 18th, 2009 12:20 pm ET

A public health care plan is vital if we want to control the costs, and the reform must address malpractice laws. I know people in the health care sector, and the legal cases that are initiated was difficult for me to believe. But it's true. The average malpractice insurance premiums is over $70,000.00 a year. That's an Average. Public plan covers every American, then you purchase supplemental plans from insurance companies, and every one's happy.

james   October 18th, 2009 12:11 pm ET

we can't tax our way out of this healthcare issue. we need to make target changes so that the free market principles as well as lowering the costs for healthcare can take place. here's a hint....figured out why healthcare costs are so high today and focus/target changes to the top 5 or 10 items. it makes little sense to tax the people in order to help the people. why can't anyone in governement see that the best solution often are simpliest solution. Healthcare reform does not have to be complicated or costly......the current reform approach has irony written all over it. Its sad to see that intelligence and proven successful are no longer criterias for our elected official. I suppose, as voters, we are getting mediocre because we voted for mediocre.

conniesz   October 18th, 2009 12:11 pm ET

Employer provided health insurance is part of a person's income package – taxing that income is part of making the income tax a fair tax. Allowing a portion of that income to be tax-free is a compromise.

People need to realize the their health insurance does not come for free – there are real dollars attached to it and it is as much a part of their income as a year end bonus (if they are lucky enough to get one). Get over it folks – nothing comes for free and it's time for everyone to pay their fair share.

GI Joe   October 18th, 2009 12:09 pm ET

Steve in IA. If you're getting Health Care for $475/month, I hope you and your family never need it - 'cause it won't pay ANYWHERE NEAR what hospitalization etc. costs.

Anonymous   October 18th, 2009 12:09 pm ET

Employer provided health insurance is part of a person's income package – taxing that income is part of making the income tax a fair tax. Allowing a portion of that income to be tax-free is a compromise.

People need to realize the their health insurance does not come for free – there are real dollars attached to it and it is as much a part of their income as a year end bonus (if they are lucky enough to get one). Get over it folks – nothing comes for free and it's time for everyone to pay their fair share.

chubby   October 18th, 2009 12:07 pm ET

Will not happen, the unions own the demorats and they cover the white house like scum on a stagnant pond. That just about covers this administration.

Doc   October 18th, 2009 12:01 pm ET

If anyone votes to tax my "Cadillac" benefits or votes in favor of any plan without a Public Option, they will forever lose my support and I will work hard to see their defeat in the next election.

Mike O   October 18th, 2009 11:58 am ET

And, when the hyper-inflation that is coming due to the excessive spending, drives the price of insurance up to the fixed number triggers, EVERY private insurance plan will become 'Cadillac' and everyone will get the huge bills. That will drive everyone toward the single payor system that is the REAL goal.

Sean D   October 18th, 2009 11:57 am ET

Make the companies market to households and individuals..... Allow portability..... and let the market (the people) fix it naturally. not by government takeover

Tom   October 18th, 2009 11:56 am ET

Fellow AOL Users:
Please write your lesgilatures about your support to repeal the McCarron-Ferguson Act. Americans should be able to purchase any health care policy in the country. This anti trust exemption provided to the insurance industry is not in the interest of the people. The repeal of the McCarron-Ferguson Act will interject enormous competition within and industry that has wrongly enjoyed captured markets. Remember...repeal the McCarron-Ferguson Act.
Thank you for your time.

From the Island...   October 18th, 2009 11:52 am ET

basically (seems like his favorite word...), Rham pumping off at the mouth to get himself back in the spotlight. He needs to remember he is an ADVISOR to BHO and doesnt make POLICY...way to go, Rhambo!!

GI Joe   October 18th, 2009 11:48 am ET

The republicans are too protective of their friends in the Health Insurance Industry.

Health Ins. made $2 billion profit in 2000, they made $12 billion profit in 2008.

Follow the money and ask why the republicans are protecting them at the cost of American lives.

Steve, IA   October 18th, 2009 11:46 am ET

Cadillac Plans in one bill are any plans with a "low" deductible. Low starts at $1500 per year. Taxe at 42%. This is not low, this is not a cadillac plan. This is a regular policy. I left a group and took out my own policy for my kids and me. It has a $500 deductible and $25 copay was half the cost of the group cost at $475/month premium. This will surely be taxed. RIIDICULOUS!!!!!!!!!!!!!!!! This is pure BULL SH!$ making me pay for other peoples health care on top of what I pay already. I work hard.

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