Martin Vaughan reports on health overhaul legislation.

Republican Sen. Orrin Hatch of Utah has an idea to improve the tax on “Cadillac” insurance plans proposed by Democratic Finance Committee Chairman Max Baucus of Montana: exempt such policies in states whose names begin with the letter “U.”

Or at least give states that begin with “U,” (OK, it’s only one) the same treatment as the 17 states with the highest health care costs. Under Baucus’s approach, those high-cost states would see a slower phase-in of the excise tax.

In the description of his amendment, Hatch called the that phase-in “arbitrary and unfair.” According to the Kaiser Family Foundation, Massachusetts, Maine and New York topped the list of for health care expenditures per capita in 2004. Utah was dead last.

The Hatch amendment is one of 564 filed with the Finance Committee as it begins considering the Baucus bill Tuesday. All of those amendments, of course, won’t get separate votes.