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  Reid Mulls Medicare Payroll Tax Increase on Rich to Fund Reform  
 

The New York Times (11/13, A19, Pear) reports Senate Majority Leader, Harry Reid "is considering a proposal to increase the Medicare payroll tax on high-income workers" to help offset healthcare reform costs, Senate aides said. Reid "is apparently considering an increase in the Medicare payroll tax rate for workers with incomes of more than $250,000 a year." The proposal "is part of a legislative package that Mr. Reid has put together in secrecy" and sent to the Congressional Budget Office for analysis. The Wall Street Journal (11/13, A4, Bendavid) says the Medicare tax proposal is gaining popularity in the Senate.

 

Reid seen as negotiating reform's cost while raising numbers of insured. The Wall Street Journal (11/13, A4, Adamy) reports that the health reform bills approved by the Senate committees each would expand coverage to a different percentage of Americans. In combining the bills, Senate Majority Leader Harry Reid (D-NV) must expand coverage to the most people possible, while keeping the total cost of the bill around $900 billion. Currently, 83% of legal US residents have health insurance, a number which the Senate Finance Committee bill would raise to 94%. Notably, the House healthcare reform bill passed recently would raise insured levels to 96%.

 

Health reform bills would cut HMO funds. The Miami Herald (11/13, Dorschner) reports, "At the moment, both House and Senate healthcare reform proposals are seeking to slash funds to the HMOs that have attracted...283,000...South Florida seniors because of rich benefit packages that can include free dental and many other perks." However, "the House bill, which has already passed, and the main Senate proposal, still in committee, offer widely different specifics for reducing benefits for South Florida's elderly." The House bill would cut "HMOs down to the same level as fee-for-service plans. Some areas could be extremely hard-hit by that provision -- since they are high far higher than the average of 14 percent. South Florida would hardly be touched, except for one small provision." The Senate Finance Committee's bill, meanwhile, "would force insurers into competitive bidding to get the Medicare HMO contract for an area."

 

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