Tax idea on health-care benefits takes a hit

WASHINGTON — A key Democrat pushed back Sunday against any notion of a tax on health-care benefits, which President Barack Obama has said he opposes at the same time his administration says should be considered.

In a debate played out on Sunday TV talk shows, Cabinet officials and Obama allies on Sunday urged lawmakers — who were expected this week to introduce specific plans that run counter to Obama’s political promises — to consider a cooperative program that would expand coverage to the 50 million uninsured Americans with taxpayer support without direct governmental control.

The Senate Finance Committee is expected to consider a tax on workers whose family health coverage costs $15,000 a year or more in premiums paid by employer and employee combined. Such a tax could help pay for Obama’s proposal to extend health care to the millions of Americans who don’t have it.

“The idea of talking about taxing benefits at a time people are overwhelmed, I think, is a very bad idea,” Sen. Chris Dodd, D-Conn., said Sunday.

The co-op concessions could be the smoothest way to deliver bipartisan health-care legislation, officials said.

“There is no one-size-fits-all idea,” Health and Human Services Secretary Kathleen Sebelius said. “The president has said, ‘These are the kinds of goals I’m after: lowering costs, covering all Americans, higher-quality care.’ And around those goals, there are lots of ways to get there.”

While supporters from Obama’s left have advocated a government-run option — championed by an ailing Sen. Edward M. Kennedy, D-Mass., and Dodd — presidential aides and congressional leaders in both parties have sought a speedy compromise.

Leading that pack: the cooperative approach, similar to rural utilities that have government financial support but operate independently.

“It’s far preferable to the government-run plan that has been discussed by the administration,” said Sen. Susan Collins, R-Maine. “We need to better understand how it would work. But it’s certainly better than a Washington-run plan.”

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