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March 31, 2009 01:00 AM

Sebelius tells lawmakers of changes to tax returns

Wire and staff reports
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    Gov. Kathleen Sebelius

    HHS nominee Kathleen Sebelius has corrected three years worth of tax returns after finding "unintentional errors."

    Sebelius alerted senators to the changes in a letter dated Tuesday that was obtained by the Associated Press. She says the changes involved charitable contributions, the sale of a home and business expenses.

    She and her husband paid a total of $7,040 in back taxes and $878 in interest from 2005-07.

    Today was the first day of congressional hearings for Sebelius.

    Earlier she told lawmakers that she supports the creation of a public health insurance option, as pitched by President Barack Obama, and balked at changing the current employer-based insurance system.

    Sebelius, Obama’s pick to head HHS and to usher in a sweeping overhaul of the U.S. healthcare system, also told members of the Health, Education, Labor and Pensions Committee that she would make Medicare payment reform a top priority if confirmed by the Senate.

    But it was a sharp exchange between Sebelius and Sen. John McCain (R-Ariz.) that drew the most attention. McCain asked Sebelius if she would support removing the tax exclusion employers currently receive on healthcare in favor of an individual tax credit. McCain had pitched a similar plan on the campaign trail, saying that the system widely in use today is unfairly skewed toward more well-off employees.

    “I support what the president has articulated, which is if Americans have health insurance that they like, they should be able to keep it,” Sebelius said. “Dismantling the current system of employer-based coverage to me is not the most effective strategy to reach full coverage for every American.”

    Sen. John McCain

    Sebelius also said she would back a public health insurance option, which the insurance lobby and many Republicans have characterized as a step toward “government-run” healthcare. The initiative likely will prove a sticking point as debate over health reform heats up this summer.

    “I don’t support the notion that the government would run the health insurance plan,” she said. “If the question is, do I support a public option side-by-side with private insurers in a health insurance exchange, (then) yes I do.”

    Sen. Edward Kennedy (D-Mass.), who was diagnosed with brain cancer last May and was visibly shaky at times during the hearing, lauded Sebelius on her skill as an elected official and her knowledge on healthcare. “When it comes to reform, we know that the challenges are great,” he said. “But I have confidence that Gov. Sebelius can lead the way with common sense solutions.”

    Sebelius is slated to go before of the Senate Finance Committee on Thursday. The committee, chaired by Sen. Max Baucus (D-Mont.), has ultimate authority over her nomination.

    What do you think? Post a comment on this article and share your opinion with other readers. Submit your comments to Modern Healthcare Online at [email protected]. Please be sure to include your hometown and state, along with your organization and title.

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