House Democrats Search for Way to Fund Government-Run Option
{{#rendered}} {{/rendered}}House Democrats, committed to a government-run health care option, told FOX News they are considering a windfall profits tax on insurance companies as a way to pay for pricey health care proposals Thursday.
Rep. Gerry Connolly, D-Va., said that Democrats consider it a better alternative than the Senate's excise tax on 'Cadillac' health plans,' which he believes will be dead on arrival in conference.
Democrats are interested in a windfall tax, not because the insurance companies are villains, but because they are huge stakeholders, Connolly said.
{{#rendered}} {{/rendered}}He added that without action, insurers will get a "free ride at the expense of American taxpayers."
Neither Connolly nor Rep. Henry Waxman, D-Calif., put a price on the tax or how much it was expected to bring in.
The two main ways to pay for the so-called public option -- according to House Democrats -- are Medicare rates plus five percent or individually negotiated rates that are 10 to 15 percent below prevailing insurance rates.
{{#rendered}} {{/rendered}}Connolly told FOX News that most Democrats favor the Medicare plus five option.