Health insurer tax not what it seems

Insurers that offer very expensive health insurance policies will have to pay a 35% tax and the revenue raised will help pay for health reform and possibly lower health care costs. However, it's a cost that ultimately will not only be a burden for insurers, but also by employees through reduced benefits, a higher share of costs in their employer-sponsored plans or both. Health policy experts applauded the idea of capping the exclusion because it would encourage workers to buy less comprehensive plans to avoid paying tax on some of their employer's contribution. That would both reduce the burden on the federal budget and reduce health spending overall. The ultimate conflict is that with an insurer tax, the expectation is that the insurer will pass the cost onto the employer. The employer, in turn, will either pass the additional cost on to workers or opt for a less expensive package. It's an ongoing debate that even President Obama disagrees with because of the consequence it may have on employee benefits.