Big 3 VEBA nothing to fear, AFL-CIO chief Gaffney says

[Omaha Steve]

http://blog.mlive.com/oak_business_review/2008/04/big_3_veba_nothing_to_fear_afl.html

"Don't fear the VEBA" was the message Michigan State AFL-CIO President Mark Gaffney gave to a group of health professionals Thursday, in a conference about the upcoming shift in UAW retiree health care.

Gaffney and a host of health care executives reassured the audience at the Michigan State Medical Society conference that the plan is on solid financial ground.

In fact, he pointed out, the more than $70 billion set aside for retiree benefits will be more stable than any global company, especially give the tough economic times in the auto industry.

This will be the largest transfer of assets (from business) to labor in the world, Gaffney pointed out.

Changes are coming though, Patricia Richards, interim CEO at Health Alliance Plan said, noting the VEBA board will have a seat at the table of any major health care decisions: "And I expect they will have a very, very big seat."

None could predict exactly how the Big 3 VEBA will affect health care delivery and policy when it takes control in 2010, but all said the impact would be significant.

This VEBA, which will cover approximately 700,000 retirees at its peak, with more than 12,000 Voluntary Employees' Beneficiary Association trusts in effect in 2005, Gaffney explained,

FULL story at link.