Published: Thursday, June 25, 2009
Obama leaves door open to health-benefit tax
President Obama won't rule the tax out as Dems struggle to fund their health care plan.
WASHINGTON -- President Barack Obama left the door open to a new tax on health care benefits Wednesday, and officials said top lawmakers and the White House were seeking $150 billion in concessions from the nation's hospitals as they sought support for legislation struggling to emerge in Congress.
"I don't want to prejudge what they're doing," the president said, referring to proposals in the Senate to tax workers who get expensive insurance policies. Obama, who campaigned against the tax when he ran for president, drew a quick rebuff from one union president.
The chief executive also met with governors and arranged a prime-time, town hall at the White House, the latest in a string of events designed to bend public opinion toward his top domestic initiative to reduce health care costs while making insurance available to the nearly 50 million Americans who lack it.
The flurry of activity extended to the Capitol, where the administration and its allies hoped for a prominent display of progress in the Senate before Congress begins a weeklong vacation on Friday.
Senate Finance Committee Chairman Max Baucus, D-Mont., labored in a daylong series of meetings to produce at least an outline of legislation that could command bipartisan support. Of the five House and Senate committees working on health care, Finance is the only one that appears to have a chance at such an agreement.
For their part, key Republicans pressed the White House for assurances that any concessions made now would not merely lead to additional demands at a later date. "We want to know the president is working in good faith along the way as we are," said Sen. Olympia Snowe, R-Maine, after meeting with Nancy-Ann DeParle, the top White House official on the issue.
Baucus appeared especially eager to show progress before the exodus from the Capitol began.
To that end, several officials said he was negotiating with representatives of the nation's hospitals, hoping to conclude an agreement that would build on an $80 billion weekend deal with the pharmaceutical industry.
Hospitals were being asked to accept a reduction of roughly $155 billion over the next decade in fees they are promised under government programs such as Medicare and Medicaid, according to numerous officials.
Baucus is seeking similar concessions from nursing homes, insurance companies, medical device makers and possibly others, noting that any legislation would create a huge new pool of customers for industry providers.
At its heart, any legislation is expected to require insurance companies to offer coverage to any applicant, without exclusions or higher premiums for pre-existing medical conditions.
Overall, Baucus has said he hopes to hold the size of any legislation to $1 trillion or less, and in private negotiations, there were discussions about further scaling back eligibility for insurance subsidies from the government.
"I don't want to prejudge what they're doing," the president said, referring to proposals in the Senate to tax workers who get expensive insurance policies. Obama, who campaigned against the tax when he ran for president, drew a quick rebuff from one union president.
The chief executive also met with governors and arranged a prime-time, town hall at the White House, the latest in a string of events designed to bend public opinion toward his top domestic initiative to reduce health care costs while making insurance available to the nearly 50 million Americans who lack it.
The flurry of activity extended to the Capitol, where the administration and its allies hoped for a prominent display of progress in the Senate before Congress begins a weeklong vacation on Friday.
Senate Finance Committee Chairman Max Baucus, D-Mont., labored in a daylong series of meetings to produce at least an outline of legislation that could command bipartisan support. Of the five House and Senate committees working on health care, Finance is the only one that appears to have a chance at such an agreement.
For their part, key Republicans pressed the White House for assurances that any concessions made now would not merely lead to additional demands at a later date. "We want to know the president is working in good faith along the way as we are," said Sen. Olympia Snowe, R-Maine, after meeting with Nancy-Ann DeParle, the top White House official on the issue.
Baucus appeared especially eager to show progress before the exodus from the Capitol began.
To that end, several officials said he was negotiating with representatives of the nation's hospitals, hoping to conclude an agreement that would build on an $80 billion weekend deal with the pharmaceutical industry.
Hospitals were being asked to accept a reduction of roughly $155 billion over the next decade in fees they are promised under government programs such as Medicare and Medicaid, according to numerous officials.
Baucus is seeking similar concessions from nursing homes, insurance companies, medical device makers and possibly others, noting that any legislation would create a huge new pool of customers for industry providers.
At its heart, any legislation is expected to require insurance companies to offer coverage to any applicant, without exclusions or higher premiums for pre-existing medical conditions.
Overall, Baucus has said he hopes to hold the size of any legislation to $1 trillion or less, and in private negotiations, there were discussions about further scaling back eligibility for insurance subsidies from the government.
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