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Monday, January 11, 2010  

Unions Protect Group Health Insurance Plans from Senate Health Care Overhaul

In response to the proposed "excise tax" to fund health care legislation, Union leaders are threatening to withdraw their support of Democrats in future elections if their group health insurance plans aren't protected.

The excise tax has been supported by the Senate as a means of lowering healthcare costs in the future - it taxes health insurance plans that are more expensive. These so-called "Cadillac Plans" are often group health insurance plans offered by organizations like unions, or by employers.

But union leaders are arguing that many middle class workers have opted for better health insurance instead of bonuses or raises. This means that the tax would fall to a disproportionate number of middle class families.

At the Washington Post, the response by unions has been to threaten a withdrawal of their support for Democrats in upcoming elections if these group health insurance plans are protected.

Union leaders support at different tax that had been suggested in the House, one that would be levied against couples who make more than $1 million dollars.

It isn't clear whether or not this alternate tax would supply as much money to fund health care, but since the unions provide considerable support in any given election it's likely that President Obama will take their demands seriously.



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