Union leaders announce 'big improvements' in Senate's health care tax plan

by: John Wojcik
January 15 2010
tags: union, health care, senate

Leaders of America's major unions, coming out of intense negotiations
with the president and congressional leaders, said late yesterday that
they were close to winning big improvements for workers in the health
care reform legislation nearing completion in the Congress.

At a hastily called press conference with leaders of AFL-CIO unions,
Change to Win unions and the National Education Association, AFL-CIO
President Richard Trumka said the final health care bill is almost
certain to emerge is a "milestone."

He noted, however, that "labor doesn't look at this as the end of the
fight," but another step in the quest for real reform.

"We've been fighting for health care for over 60 years," he declared,
"and we are on the threshold of a significant achievement."

What started out as a planned Monday meeting at the White House by
union leaders and the president ended up as two days of hard
negotiating resulting in what the union leaders call major changes in
favor of workers in the excise tax the Senate bill places on high-cost
health care plans.

The deal raises the threshold at which family plans are taxed from
$23,000 to $24,000 in 2013 for families, with annual increases in the
threshold tied to the Consumer Price index plus one. The threshold for
single plans will be $8,900.

The agreement calls for further raising of the threshold if health
care costs grow faster than expected from 2010-2013.

Also included is a "defacto" raise of the threshold by as much as
$2,000 in 2015 when dental and vision costs will be exempted.

For plans that have significant numbers of women and/or older workers
the threshold will be set at a higher, though unspecified rate.

Another feature of the deal is to preserve the original Senate
proposal to raise the threshold for plans with workers in high-risk
professions, affecting more than 9 million workers.

The plan provides for temporary raise of the threshold in high-cost
states, calculated to help more than 38 million workers and for
unspecified "transitional relief" for employers and workers to adjust
to the tax.

Insurance plans that are part of collective bargaining agreements
will, beginning in 2017, be able to enter the insurance exchange. The
Senate bill, as it exists now, does not allow this option.

Very important to the unions is the part of the compromise that
provides a five-year "transition window" for state and local employee
plans and plans negotiated through collective bargaining agreements
before they are subject to the tax.

Some at the press conference tried to minimize the importance of the
agreements, particularly the last one, with a reporter asking how
valuable it would be for a worker to avoid paying the tax now, only to
have to pay it several years from now.

"If we do nothing to reform health insurance now no-one will be able
to afford any kind of health insurance a few years down the road,"
Trumka shot back. "If we had our way this would not be the final bill
we would have written but we have some important reforms here and
doing nothing is not an option."

Van Roekel noted that "the progress we've made bolsters our belief
that a nation as great as America can provide health care reform
without penalizing our working families in the process."

The compromise still leaves issues the unions have said are important
in an unresolved status. Among them are guarantees that employers take
responsibility for paying a fair share of health care costs.

When asked about this, Trumka said, "We've seen tremendous progress
over the last couple of days. President Obama deserves credit for
being the kind of president willing to take this on. But we are
continuing the fight to increase our priorities in the health care
reform bill."





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