Senate Finance Committee Chairman Sen. Max Baucus, D-Mont., left, talks with, from second from left, the committee's ranking Republican Sen. Charles Grassley, R-Iowa, Sen. Orrin Hatch, R-Utah, and Sen. Jon Kyl, R-Ariz., on Capitol Hill in Washington on Friday.
WASHINGTON -- Speaker Nancy Pelosi said House Democratic leaders are considering a tax on "Cadillac" health-insurance policies that offer especially generous benefits.The tax is a central feature of health legislation pending in the Senate Finance Committee, but has previously not received much attention in the House. Legislation that cleared three House committees over the summer was financed by a surtax on the wealthy, among other steps.Proponents say the tax on generous plans could discourage wasteful health spending, while opponents including unions say it would hit middle-class people.
Picking up the tax -- or some version of it -- would allow the House to pare back the proposed surtax, as previously promised by the speaker.The speaker made clear no decisions have been made, but added: "It's under consideration." House Democratic leaders are meeting Friday to consider a range of changes to make the health overhaul bill more palatable to rank-and-file Democrats, while also bringing the 10-year cost of the broader package down to $900 billion.
"We'll just have to see how much money we need for what," Ms. Pelosi said.
