Unions have led the fight against the proposed "Cadillac tax" on high-cost health benefits. And when union leaders, including CWA President Larry Cohen, negotiated adjustments in the tax with the White House opponents of health reform depicted the agreed-upon changes as a sweetheart deal for unions.
For example, Fox News said, "Democratic leaders are once again drawing fire from their critics for extending special treatment to an interest group in exchange for its support of the bill. The latest deal was struck Thursday among the White House, Congress and union leaders over the proposed tax on high-value 'Cadillac' health insurance plans."
As with many issues involving health reform, the reality doesn't match the hype.
The so-called "Cadillac tax" as included in the Senate-passed health reform bill would hit millions of workers, 80 percent of whom are not represented by unions, according to a study released today by the Center for Labor Research and Education at the University of California, Berkeley. And under the proposed amendment negotiated by the union leaders with the White House, 83 percent of those affected would be non-union, the study estimates.
Moreover, most of the savings from the union-White House agreement – 71% – would go to non-union workers, according to the study.
Estimates were based primarily on the Kaiser Family Foundation annual survey of employers about health costs. The employers not only report on costs and benefits, but indicate whether their employees are covered by union contracts.
The authors are Ken Jacobs, William H. Dow, Dave Graham-Squire and Laurel Tan. Jacobs is chair of the Center for Labor Research and Education. Dow, a health economist, was a senior economist for President George W. Bush’s Council of Economic Advisers.