Democrats are once again caving to Unions by allowing their members to be exempted from the “Cadillac Tax” on health benefits. Under the plan, Union members won’t have to pay the tax until 2018 but you just know that come 2017 more back-room dealings will occur and they’ll again be exempted.
In pushing a giant step closer to a health care reform deal, 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.”
Unions had objected strongly to the proposed tax on high-value insurance policies, fearing it would hurt their members, and they won several concessions from the administration. Under the deal, if it becomes law, union workers will be shielded from the 40 percent tax for five years — until 2018. The threshold for the tax also was raised so that it will kick in for plans worth $24,000 instead of $23,000. And dental and vision coverage will not count toward that threshold.
But what about everybody else?
The unions, traditional supporters of the Democratic Party and a major factor in Obama’s political infrastructure, got a deal, but Republicans said that non-union workers will still have to pay the tax from the get-go starting in 2013.