According to the article “Taxing Pricey Insurance: No Health-care Cure” by Kate Pickert on Time.com, Congress is trying to figure out a way to pay for the expensive health insurance reform and taxing health insurance benefits is on the table.  The plan may cost up to 1 trillion over the next 10 years and many are left wondering where this money will come from.  Employers have been offering tax free health benefits for more than 50 years and changing this system makes many people very uncomfortable.

Approximately 2/3 of Americans receive their health insurance through their employer so it may be here to stay.  One idea being considered is a cap on the amount of employer-sponsored health insurance that can be provided tax free.  This would leave only very expensive, elite plans to be taxed.  But even this proposal is being frowned upon.

This leads Congress to consider taxing health insurance companies.  The Senate Finance Committee has reportedly shifted towards a plan that would tax insurers who offer the most expensive health care plans.  This would generate some tax money as well as encourage more affordable health insurance.  The complex health care reform debate continues.