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Stabenow on health bill's fees: 'You could call that a tax'

By Michael O'Brien - 09/22/09 09:05 AM ET

You could call fees on drug and insurance companies contained within health reform legislation a "tax," one Democratic senator conceded Tuesday.

Sen. Debbie Stabenow (D-Mich.) said that surtaxes on high value insurance plans and on drug manufacturers were akin to participation fees for health companies that stand to gain millions more customers because of healthcare reform.

"When you say, 'Well, taxes go up,' well, insurance companies and drug companies that are going to get more customers are going to be asked to contribute to that, through a manufacturers' fee or an insurance premium fee," Stabenow said during an appearance on MSNBC's "Morning Joe."

"You could call that a tax, but what we're talking about is an agreement that if the insurance companies and the drug companies want to be able to participate with more customers, then they can help pay for this," she added.

Some lawmakers have sought to push back against calling the fees contained within the bill a "tax," fearing that the perception of a bill that raises higher taxes could be used as a political cudgel to sink the reform legislation.

Democrats entered markup of the healthcare bill proposed in the Senate Finance Committee this morning, where they are expected to tinker with the fees or taxes in the bill to help them less directly impact middle class individuals and families.

"I think there are a tremendous number of positive things in the bill. I think we're trying to improve it," Stabenow said. "There are a lot of amendments, but we're also doing a lot of work."



Source:
http://thehill.com/blogs/blog-briefing-room/news/59741-stabenow-on-health-bills-fees-you-could-call-that-a-tax
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