On Tuesday, over 100 members of the Communications Workers of America(CWA) District 13 boarded buses and headed to Washington to meet with the entire Pennsylvania and Delaware Congressional delegation with a strong and angry message, "Don't tax our health care". The PA AFL-CIO was in their face again on Wednesday.
Labor and CWA specifically have been and continue to be staunch advocates of real health care reform with a sincere and strong public option. They have worked tirelessly and effectivly to help elect Barack Obama as President and a large supporting cast of Congressional Democrats.
The Baucus plan has a provision to tax insurance companies and corporations who self fund their health care above a set value. These plans have been cleverly "framed" as cadillac plans by the tax proponents.
More below the fold, but first check out House Dems; Don't tax 'Cadilac Plans'
How the Excise Tax Works:
A 40% excise tax would be assessed on the value of health plans exceeding $21,000 for a family and $8,000 for an individual starting in 2013. The threshold levels for pre-Medicare retiree plans are higher--$26,000 for families and $9,800 for individuals. These thresholds would increase at the rate of general inflation plus 1%. This is well below the rate of medical inflation and about half the rate at which employer and union plan costs have been increasing.
As incredible as it may seem, the value of many employer plans already exceed these stated values in 2009. Now add 7-9% (the rate of medical inflation) a year compounded over the next three years and many more employees and retirees will be affected.
But they're taxing those nasty insurance companies, Right?;
True. But make no mistake about it, these excise taxes will be passed directly to your employer. How can you tell? Just listen to the sound of crickets over by the insurance spokespersons. Now how do you think your employer will react? Employers simply will make sure the value of their plans won't exceed the thresholds. Health Care is expensive enough without a 40% excise tax. They will increase cost shifting (higher co-pays and deductibles) and alter plan designs to reduce coverage’s. Those with insurance, whether bargained for or simply employer provided will be at risk of further benefit reductions at an accelerated pace, year over year. The most vulnerable are the retirees who still get health care from their former employer, especially those pre-65, the most costly group.
This provision, to fund Health Care reform on the backs of the middle class by penalizing responsible employers is a purposefully crafted poison pill to alienate one of the most influential supporters of Health Care Reform.
Don't let them get away with it. Labor has had the backs of Health Care Reformers throughout this fight. Now Labor needs the support of the progressive community. Please call your Senators and congressman to STOP the Excise Tax on Health Care!