Thursday, September 17, 2009

20 year v. 10 year scoring

What I say here about 20 year period making it harder to pass budget muster was is the opposite. The tax on high value insurance plans (8k individual, 21k family) is indexed for inflation. But, health care costs are rising much faster than inflation. This provision will raise incresasingly more money in years 11-20.....or health care costs will have slowed. I would still favor straight cap of tax exclusion, which would have the same basic benefit over time....either raise more money or costs will have dropped. One of these two is more likely to slow cost growth than is competition.

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