Reid Health Care Bill Funded By Medicare Cuts, Tax on “Cadillac” Plans
From The Tax Foundation:
Sen. Harry Reid and Senate Democrats last night unveiled their health care reform bill, and late last night, the Congressional Budget Office released its report on the proposed piece of legislation. The gross price tag for the coverage provisions is $848 billion. It would cut the deficit by $130 billion if fully enacted, according to CBO estimates. The main financing mechanisms would be cuts to Medicare, a new excise tax on high-valued "Cadillac" health insurance plans, a 1/2 percentage point increase in the Medicare tax rate for high-income earners, and various tax hikes imposed on the health care sector including fees on manufacturers and insurance companies.
The pie chart below outlines the main categories of financing for the $848 billion bill (plus the $130 billion to finance deficit reduction).
(click to enlarge)
