by Locker Room contributor
One element of ObamaCare is the proposed “stiff” excise tax on “Cadillac care” health plans, as Allan Sloan discusses in the new Fortune. Supporters say the tax would raise revenue and reduce health spending:
The problem is that they define “Cadillac” not by the benefits a plan
delivers but by how much a plan costs. But as any insurance maven will
tell you, costs depend more on the people being covered (old, sick, or
both?) and location (high-cost New York or low-cost Montana?) than on
the level of benefits. “High-cost plans aren’t necessarily generous
plans,” says Beth Umland, director of research for health and benefits
for the Mercer consulting firm.?
I must admit that I’m shocked (shocked!) to learn that an idea based on soak-the-rich demagoguery would turn out to hurt more than those with the fattest wallets.