Friday, January 15, 2010

Labor Unions Are For B.O's Health Care Reform, Again

after winning concession from the White House. Sounds too familiar.

The so-called health care "reform" as proposed by the administration and the Democratic Congress, which should be really called "the plan to force people to purchase health insurance plans at inflated price for the reasons known only to the politicians", is "on" again after all, because powerful labor unions are "on board" again after winning a major concession after the Wednesday's negotiation at the White House (what a surprise).

Under the concession, labor union members will be exempt from the so-called "Cadillac tax" (40% tax) on high-cost health care plans until 2018. The deal is worth $60 billion, and it will reduce the amount to be raised by "the Cadillac tax" from about $150 billion to $90 billion.

Why would labor unions care about "Cadillac" insurance plans (i.e. plans valued at $8,900 or more for individuals and $24,000 or more for families)? Because many of the plans for their members do fall into that category - older workers and women.

In 2008, the union membership rate for public workers was 36.8%, while the membership rate for private workers was 7.6%. The national average was 12.4% for all workers. Of public workers, the local government workers (teachers, librarians, fire fighters, police) had the highest membership rate at 42.2%. (Source: Bureau of Labor Statistics Union Member Summary, January 28, 2009)

So, this concession mostly benefit unionized public workers, particularly the government workers. Non-unionized, private-sector workers will get to pick up the tab in one form or another. It will make a nice gimmick to encourage more private workers to join the union or form a union at their workplace.

(Let me suggest how they would fill the gap of $60 billion: tax cosmetic surgeries (botox, hair transplant, etc.) done for the members of Congress at 100%.)

The Obama White House made concessions to the pharmaceutical industry and health insurance industry, and now the labor unions.

What are the concessions to the rest of us? Anything? (I'd love to have the right to not participate.)

For more on this concession to the labor unions, read:

Unions will dodge O's health tax (1/15/2010 New York Post)
White House scores key labor deal (1/14/2010 Politico)


Post a Comment