The issue of an excise tax on private insurers was discussed by members of the Senate Finance Committee as they continue work on a health reform bill, but never reached a full conclusion.

During mark-ups of the America’s Health Future Act, proposed by Sen. Max Baucus (D-Mont.) Sept. 30, Democrats pledged their commitment to help retirees and union workers avoid a tax on so-called “Cadillac” plans offered by their providers.

Baucus’ bill currently levies a 35% excise tax on insurers for individual health plans worth more than $8,000 and family plans worth at least $21,000 annually.

John Kerry

Sen. John Kerry (D-Mass.) said he was concerned that the tax would impact too many people, including union workers in “high-risk” industries, including coal mining and firefighting, according to Bloomberg.

Baucus countered with an offer to raise the excise tax to 40% and lift the thresholds to $8,750 and $23,000 for retirees or those in such industries, according to the report. Kerry proposed raising the thresholds to $9,800 and $25,000, moving them higher for those between the ages of 55 and 65.

With no resolution, it is widely expected the issue will be revisited when the full Senate debates the bill following approval by the finance committee.

That debate should be finalized before Thanksgiving, said Senate Majority Leader Harry Reid (D-Nev.). Reid said the Senate should be able to adopt a bill in time to get President Barack Obama’s signature by the Nov. 26 holiday, according to Bloomberg.