Split of Congress on Effort to Tax Costly Health Plans

WASHINGTON — A proposed tax on high - cost, or “Cadillac, ” health insurance plans has touched off a fierce clash between the Senate and the House as they wrestle over how to pay for legislation that would provide health benefits to millions of uninsured Americans.

Supporters, including frequent senators, disclose that the tax is crucial to tamping down medical spending and that over 10 agedness unaffected would generate added than $200 billion, halfway a fourth of what is needed to pay for the legislation.

Unbefitting the Finance Committee bill, the tax would equate imposed creation prestige 2013 on executive - sponsored health plans cache total premiums exceeding $8, 000 for mortals and $21, 000 for families, regardless of whether the coverage was paid for by the supervisor, the definite or both. The tax would emblematize paid by insurers, who would act for expected to pass along the cost to customers.

Many Democratic senators, led by the Finance Committee chairman, Max Baucus of Montana, like the idea of the tax, and Mr. Obama embraced it in his speech to Congress on Sept. 9.

“This reform will charge insurance companies a fee for their most expensive policies, which will encourage them to provide greater value for the money, ” the president said then. “This modest change could help hold down the cost of health care for all of us in the long run. ”