As Gene Veith notes , what you consider a no-frills health insurance policy may be what the government considers a “Cadillac” plan:
To help fund the proposed health reform measures, lawmakers are thinking about imposing a stiff tax–up to 35%–on so-called “Cadillac” health insurance plans. Those are defined as individual plans valued at $8,000 per year, or family plans valued at $21,000.
They typically have low deductibles, cover vision, and dental. Such plans are usually just described as “good benefits,” or “I’m really pleased with the health insurance that our company offers.” Such “Cadillac” plans are not just for high-paid executives. They are common in union contracts.
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