Should Health Reform Include Tax on “Cadillac” Insurance Plans?

One element of current health reform proposals is taxing so-called "Cadillac" insurance plans that offer low co-payments and cover a wide range of services, including mental health counseling, organ transplants and even in vitro fertilization.

But as The Associated Press reports, this provision could affect school teachers like Kinzi Blair, who makes only $46,000 a year but has a good health insurance plan.

Here are excerpts from the story:

Most Americans don't know whether the tax on health plan premiums would affect them or not, says John Desser, a health policy adviser to John McCain during his presidential campaigns who now coordinates public policy for eHealth Inc., an online marketer of health insurance.

"I don't think most Americans have any idea what the cost of their premiums is going to be. I don't think most Americans know that the cost of their insurance could go up as a result of this legislation because we're making it more fair for people who have been treated unfairly in this system."

(Blair) says she doesn't know the answers or what lawmakers should do. Is it possible to rebuild a health insurance system without some degree of tax unfairness? Or is somebody going to get hurt, no matter what, so that uninsured people, like she once was, can get coverage?

"It's definitely a fairness issue," she says.

What do you think? Is health reform going to be a zero-sum game where some individuals benefit at the expense of others? If so, who or what is the priority? Who should win? Who will lose?

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