Let's hope union officials haven't made a deal to exempt only union health plans from insurance tax

[Better Believe It]

Rumors are flying that top union officials have struck a deal with the White House that will give only unionized workers a temporary exemption for the proposed healthcare insurance tax. Labor unions would than be free to negotiate inferior health plans providing less coverage which in turn will enable employers to obtain cheaper insurance policies with tax free premiums.

Whoopppeee!

Besides enabling employers to escape the taxes by reducing health care benefits, this "deal" will hurt both unionized and non-union workers in one other very important way.

The anti-union corporate interests would certainly use such a healthcare deal in their anti-labor propaganda. They will tell unorganized workers: "See, the union bosses really don't care about you, they just care about their own members and collecting membership dues money from more workers".

If this proposal is accepted by union officials, that will encourage harmful divisions and conflicts between organized and non-union workers and that can only benefit right-wing politicians, Wall Street and corporate America.

The labor movement should speak on behalf of and for all working people, not just those who happen to be paying union dues.

If the labor movement hopes to organized non-union workers by the millions it must defend and champion the rights and interests of all workers. It has done this in the past when fighting for social security, unemployment compensation, civil rights, Medicare and other social reforms and legislation.

[inna]

1. KR, good point.

Tax the rich, not good insurance plans. I'm so sick of this nonsense. x(

[stray cat]

2. of course thats the deal - unions don't care if you are not a member

[Me.]

3. It Seems That Isn't The Case

“A revised version of the so-called "Cadillac tax" would exempt holders of health-care policies that were negotiated through collective bargaining, meaning that union workers wouldn't get hit. But in a sign of how much labor leaders have dug in their heels, they are also pushing to exempt non-union workers who earn less than $200,000 a year. In addition, negotiators are also working out a separate compromise that could exempt state and municipal employees in right-to-work states.

"This is not simply just a deal for unions," said one of the sources briefed on the conversations. "This will take the burden off middle-class individuals as well."

http://www.huffingtonpost.com/2010/01/14/white-house-and-labor-mak_n_422947.html

[Better Believe It]

4. So union and non-union workers in "right-to-work" states won't be exempted?

"negotiators are also working out a separate compromise that could exempt state and municipal employees in right-to-work states."

That doesn't sound very good at all.

And is this a "temporary" exemption as first reported in the Washington Post?

Source: Washington Post

White House, unions reach deal on taxing insurance coverage
By Lori Montgomery

The White House has reached a tentative agreement with labor leaders to tax high-cost health insurance policies, sources said Thursday. The agreement clears one of the last major obstacles on the path to final passage of comprehensive health care legislation.

The deal would temporarily exempt union health plans from a significant surtax on unusually generous health policies plans, giving union leaders time to negotiate new contracts, according to sources familiar with the talks. They spoke on condition of anonymity to avoid affecting ongoing negotiations. Additional details of the deal were not immediately available.

The White House has reached a tentative agreement with labor leaders to tax high-cost health insurance policies, sources said Thursday. The agreement clears one of the last major obstacles on the path to final passage of comprehensive health care legislation.

Four labor negotiators briefed lawmakers on the parameters of the deal at a luncheon at the Capitol. Lawmakers said the agreement would raise the cost of unusually generous health policies and ignore secondary coverage, such as vision and dental plans. Health plans negotiated as part of collective-bargaining agreements would be exempt for two years after the 2013 effective date, giving labor leaders time to negotiate new contracts.

http://voices.washingtonpost.com/44/2010/01/white-house-unions-reach-deal.html?wprss=44

So labor union officials are given two years to negotiate inferior healthcare plans providing reduced benefits which enables employers to avoid paying the health insurance taxes because they have cheaper plans and premiums!

How is that progress?

[Me.]

6. If This Goes Through I Think We Can Agree

That most middle class people make under 200K.

“Pelosi scored today big time after a marathon negotiating session at the White House, all but gutting the Cadillac tax on high-cost health insurance plans that the White House wanted.

The move also guts the last significant force for cost-containment in health care legislation. Pelosi was adamant about killing the tax after giving up the public option. She thinks it violates Obama's pledge not to raise taxes on the middle class.

Union leaders will celebrate with a conference call shortly. Only a ghost of the tax remains. It excludes dental and vision benefits and most union-bargained plans, and raises the definition of high-cost plans. A final push is to exclude taxing anyone who makes under $200,000, a big Pelosi goal. Pelosi hopes to announce agreement on a final bill tomorrow, send it to CBO and pass it in the House and Senate as soon as they get a score.”

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x7466460

[Omaha Steve]

7. Marta and I are under the 200K

I want to see the final compromise before I get excited or pissed without cause.

OS

[Me.]

8. Right

Holding both my fire or praise until the i's are dotted

[Better Believe It]

5. What other DU'ers have pointed out regarding this "deal" on another DU board

dflprincess (1000+ posts) Thu Jan-14-10 11:28 AM

So if the unions need to renegotiate contracts does that mean that after all the wage concessions they've made to protect their benefits, they are now going to have negotiate the quality of their health insurance down?

Lasher (1000+ posts) Thu Jan-14-10 12:16 PM

So union members get a delay but get their screwing when contracts expire. The stay of execution is denied for everyone else who will be affected. Surely this will exacerbate the bad taste already in many people's mouths.

progressoid (1000+ posts) Thu Jan-14-10 12:21 PM

Yep - and we get to go to the front of the line to get screwed.
Yippee!!

pundaint (649 posts) Thu Jan-14-10 12:31 PM

Why is every interest willing to accept so little to get behind this piece of garbage?
If this is true, screw the unions for contributing to this sell-out of the People's interests.


JDPriestly (1000+ posts) Thu Jan-14-10 12:48 PM

Horrors! Do the unions really think they will get anything acceptable if they try to renegotiate their contracts.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x4225067

[Better Believe It]

9. Read this article by Michael Whitney on the GD board

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x7473549