As proposals continue to be bandied about on how to lower the cost of a health-system overhaul, one idea appears to be losing steam, that of taxing employer-provided health insurance. Sen. Chuck Grassley had talked up the proposal just last week . But the WSJ notes that other senators including Kent Conrad, he of the health co-op idea , say that a first-ever tax on such benefits is unpopular and would be difficult to explain to voters. Though it’s not completely off the table, the Senate is considering a broader spate of options to help fund the huge price tag of reform, including “modestly” limiting the tax deductions for the wealthy, a

proposal President Obama has raised repeatedly . Just 30% of voters support a tax on benefits, according to a telephone poll conducted in late June, compared with 55% who support the idea of limiting tax deductions for families who make over $250,000 a year. On the industry front, various stakeholders have agreed to cost-saving measures, the hospital association being the most recent to agree to cut costs . But, notes the New York Times , it isn’t clear if those savings will actually become reality, or what industry would get in return for their cooperation.

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Push to Tax Health Benefits Starts to Fade in Senate