Democrats Want to Change PP&ACA

For John, BLUF:  .  Nothing to see here; just move along.

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From The Hill we have "Reid, Pelosi pushing for repeal of ObamaCare's 'Cadillac tax'".

Senate Minority Leader Harry Reid (D-Nev.) and House Minority Leader Nancy Pelosi (D-Calif.) are working behind the scenes to repeal one of the most controversial taxes in ObamaCare, multiple sources tell The Hill.

Reid and Pelosi have been talking since the spring with President Obama about repealing the “Cadillac tax” on employer healthcare benefits, a senior Democratic aide confirmed on Friday.

“Point is, they both want to get this done,” the Democratic aide said.

Opponents of the 40 percent excise tax on high-cost health plans believe 2015 is their last, best chance to get the provision repealed before presidential politics grind the legislative process to a halt.  With just two months left in the year, sources say the most ideal option for Democrats is attaching repeal to the package known as “tax extenders.”♠  The cost of the extenders bill is typically not offset, making it an attractive vehicle for ending one of ObamaCare’s biggest revenue generators.

And where is this drive to repeal the tax on certain healthcare plans coming from?

Powerful labor groups such as the AFL-CIO and the American Federation of Teachers vehemently opposed the Cadillac tax from the start.  They say repeal needs to happen soon, before employers begin trimming back healthcare benefits.

There is a problem with this plan.  Cost.  The PP&ACA is predicated, in part, on the Federal Government reaping $87 billion (Billion) a year in revenue from taxing the "Cadillac" health care plans.  Repealing the tax is just more money added to what at this writing is a US Federal Debt of $18,560 Trillion.  Per the article,

Health officials and economists close to the law are dead set against abandoning the tax, which they argue should nudge employers and employees toward cheaper insurance plans with less waste.

In English that says that if you have a decent health care plan you should pare it back, to avoid medical health care waste.  Frankly, this is just manipulating the marketplace in contravention of the economic rules that have been exploited to pull millions out of poverty.

But, Pelosi and Reid are the minority party in Congress and the President is dead set against repeal.  What to do?

To get Republicans to the table, Leibfried said Reid and Pelosi might have to agree to the repeal of the medical device tax — another unpopular funding mechanism for the healthcare law that many Democrats oppose.

That is pretty much the only mention of the Republican side of the aisle.  And, cutting the medical device tax will only add to the deficit, and the debt.

Hat tip to Memeorandum.

Regards  —  Cliff

♠  Tax Extenders…This is the Wikipedia discussion:  "The Act increased the statutory limit on the public debt by US$700 billion to US$11.3 trillion. However, the legislation is designed to have a net zero long-term cost, and includes language that mandates the President and Congress to develop a plan to recoup any money that is not recouped within 5 years."  Of course it does.