On February 22, just prior to the start of a White House health care summit scheduled for February 25, President Obama released his version of health reform.
The 11-page plan uses as its base the bill passed by the Senate in December 2009 (the “Patient Protection and Affordable Care Act of 2009”).
Obama’s proposal includes the tax on so-called “Cadillac” plans, but raises the threshold at which the tax would apply from the Senate’s $23,000 for families to $27,500. The tax would not go into effect until 2018.
Among the other revenue provisions in President Obama’s proposal is a .9% increase in Medicare tax for singles with incomes over $200,000 and couples filing jointly with incomes over $250,000. A 2.9% Medicare tax would apply to the unearned income (such as interest, dividends, annuities, royalties, and rents) of these high-income taxpayers.
According to the White House communication director, President Obama’s proposal was “the opening bid for the health meeting” on February 25.
For more information about the Obama proposal, go to the White House website at www.whitehouse.gov/health-care-meeting/proposal