Med-Vision Redefines Tax on 'Gold-Plated, Cadillac' Health Plans

Expert Analysis of Tax Concept for Healthcare Reform
TAMPA, Fla.--(Business Wire)--
Dan Ross, founder and president of Med-Vision, a Tampa-based medical consulting
company, asserts that the Senate Finance Committee`s proposal to impose a 40
percent tax on individuals in "gold-plated, Cadillac" health insurance plans
would be best described as a tax on groups of the chronically ill.With these
"high-dollar" plans priced at $8000 or more for individuals and $21,000 or more
for families annually, the proposed tax and other taxes on insurance companies
are the latest attempt to raise $774 billion over 10 years to fund healthcare
reform.

"Some in Washington believe `Cadillac` plans have lower deductibles and
co-payments, but high-dollar plans relate more to misery and sickness from
chronic disease," said Ross, who warns that the perception of taxing "the guy
covered by the rich health plan" will backlash into a "circular firing squad."

By targeting individuals in groups covering the highest number of sick, the tax
will disproportionately affect those in plans offering retiree coverage,
populations with older average ages, and residents of states with higher
healthcare costs.Plans with lower deductibles and co-payments are producing
lower aggregate cost, as evidenced by a national move to medical homes and
employer-sponsored on-site health clinics with lower deductibles and
co-payments.

Ross, who has 20 years experience in employee benefits, conducted an analysis of
200,000 plan members covered under multiple employer self-funded health
plans.The two-year analysis looked at claims totaling $800 million.Among the
findings:

* 85% of the group (170,000 members) accounted for $155 million or 19% of annual
claims.This larger percentage averaged $456 per member.
* 15% of the group (30,000 members) accounted for the remaining $645 million or
81% of annual claims.This smaller percentage averaged $10,800 per member.

Med-Vision also points to the Centers for Disease Control and Prevention, which
estimate that chronic disease accounts for 75 percent or $1.5 trillion of the
national $2 trillion annual healthcare spending.Similarly, the Robert Wood
Johnson Foundation published that caring for those with chronic disease accounts
for 78 percent of health spending.

Founded in 2005, Med-Vision delivers healthcare planning, risk management, and
wellness consulting to help employer groups achieve optimal employee health and
productivity.Med-Vision has helped corporations, healthcare facilities,
municipalities, and school districts reduce risks, reverse trends, and decrease
healthcare costs while increasing quality of care.

Med-Vision
Dan Ross, President, 813-962-7436
Dan.Ross@med-vision.com

Copyright Business Wire 2009