Health plan would tax medical benefits

The Washington Times reported that Congressional leaders searching for ways to fund an overhaul of the nation's health care system are prepared to tax for the first time employer-provided medical benefits.

But growing bipartisan support for a tax on the most expensive health benefits belies the pending battle on how to use revenue to reform the health care system. And there are vocal opponents of the plan that Senate leaders are expected to introduce this week, including business groups and labor unions.

"None of the proposed ways of expanding health care benefits are going to be easy to enact politically," said Mark McClellan, director of the Engelberg Center for Health Care Reform at the Brookings Institution.

Democrats favor taxing the most expensive plans and using revenues to help pay for a public insurance plan. Republicans favor giving individuals, instead of employers, a tax credit to buy private insurance. And opponents to the proposal say taxing the one aspect of the current health care system that works may not be a good idea. Read more here.