NYT: G.M. Pact Calls for a Push for Health Care Reform

[Omaha Steve]

http://www.nytimes.com/2007/10/06/business/06auto.html

DETROIT, Oct. 5 — For years, General Motors has said it supports the United Automobile Workers union in its push for change in the nation’s health care system. Now the U.A.W. has persuaded G.M. to put its money where its mouth is.

In a labor agreement reached last week between the company and the union, G.M. has agreed to spend up to $15 million over the next few years to create a National Institute for Health Care Reform.


Rebecca Cook/Reuters
Detroit autoworkers rallied for national health care in July. A new contract calls for carmakers’ money to research the issue.


The pledge is contained in contract language that creates a voluntary employee benefit association, or VEBA, a health care trust that would take responsibility for G.M.’s $55 billion liability for benefits covering G.M. employees, retirees and their families.

G.M. workers are voting on the tentative agreement, and results are expected on Wednesday.

The institute, to be financed by five annual payments of $3 million each, would be the “premier research and educational health reform think tank,” the agreement says. It would be “dedicated to understanding, evaluating and developing thoughtful and innovative reform measures.”

The institute, run by G.M. and the U.A.W., would engage economists, analysts, academics and other experts, who would conduct studies on the current health care system as well as alternatives. It would look at ways to lower drug costs and would sponsor forums on health care changes.

FULL story at link.