A tax hike to pay for health care plan?

A doctor reads a blood pressure gauge during an examination of patient at the Codman Square Health Center in Dorchester, Mass.

TEXT OF STORY

STEVE CHIOTAKIS: President Obama's been talking about an overhaul of health care, and one of the main questions about his plan is how to pay for it. Over the weekend we got a hint. And it may involve a tax hike.
Marketplace's Sam Eaton reports.


SAM EATON: President Obama's top political adviser on Sunday said the White House wouldn't rule out a tax hike on employer-provided health insurance plans. This despite Obama's campaign promise to not raise taxes on those earning less than $250,000 a year.

David Axelrod spoke yesterday on ABC's "This Week." He said President Obama has no interest in "drawing lines in the sand" when it comes to funding the health care reform plan making its way through Congress.

DAVID AXELROD: The important thing at this point is to keep the process moving, to keep people at the table, to the keep the discussions going. We've gotten a long way down the road.

Democrats are pushing for the tax hike as a way to pay for the health care plan without increasing the federal deficit. Current proposals call for a tax on health plans that exceed about $17,000 for families, and just under $7,000 for individuals.

This week, in a Washington suburb, Obama is holding a town hall-style meeting in order to help sell the plan.

I'm Sam Eaton for Marketplace.

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