House considers insurance tax on 'Cadillac plans'

House Democrats are now considering adding an insurance tax on 'Cadillac insurance plans" to pay for President Barack Obama's health care reform initiative.

Democratic Speaker of the House Nancy Pelosi told reporters on Friday that they are discussing a possible insurance tax to pay for health care reform but the California Congresswoman did add that other possibilities were being considered to offset the price tag of the bill, according to the Associated Press. “We have to see how much money we need, and if we're taking the bill down in costs there are other provisions in the Senate bill that bend the curve that might be more palatable. We’ll see.” Proponents of the insurance tax, which Pres. Obama supports, say it would help lower health care costs by encouraging others to become more aware of the costs of health care consumers. If the insurance tax provision is added in the bill then it could possibly help Washington lower the income tax that the Democrats have proposed. Also on Friday, House Democratic leaders, according to CNN, were working around the clock to create the final version of the House of Representatives health care bill that is estimated to be, according to the Congressional Budget Office, $1.1 trillion. However, the House leaders and chairmen are trying to slash $200 billion from the bill because Pres. Obama wants to have $900 billion over ten years. Aides to Democratic leaders in the House believe if the tax is approved then it would most likely modify the Senate Finance Committee version, which Representatives think it would hit middle class families and small businesses. Pelosi did verify, however, that no final plans will be made until the CBO reviews all financial situations and cost estimates, according to Bloomberg News, "We will continue our meetings next week and hope to put something forward after that."