PIMA AREA LABOR FEDERATION

Health Care UPDATE!  Excise Tax Agreement reached with White House officials and National labor leaders...

Dear PALF Affiliates,

Thank you all for your activism over the past several months with regard to the role of a proposed Excise Tax (tax on benefits) in financing national health care reform, a long-standing legislative priority of the AFL-CIO and working family advocates. 

The PALF is proud to say that both our Congressional Representatives in southern Arizona have taken a stand with us and supported our desire for seeking other opportunities to help fund real and substantial health care reform.

That being said, as a Federation of working family advocates it is important that we maintain a sense of unity and purpose when moving forward with our efforts.  It is our ultimate goal to help level the playing field for all middle-class Americans, and health care reform is a monumental step forward in making that happen.  We are encouraged by the progress that has been made in the last few days, and AFL-CIO leadership as well as international presidents have been working diligently to improve the bill to make it fairer for working people across the country.

The bill will not be perfect and we will not get everything we want. But despite the efforts of recalcitrant Republicans who have opposed every health care measure because they want to see health care reform fail, we are now looking at the outlines of a final health care bill that should be seen as a milestone in the long journey toward comprehensive reform. 

Update of Key Points on Benefits Tax Improvements

Multiple ideas to make financing more fair and help affected working families have been agreed upon.  These include:

• Raising the threshold at which family plans are taxed from $23,000 to $24,000 in 2013 for all working families, with annual increases of Consumer Price Index plus one.  The threshold for single plans will be $8,900.  (Taft Hartley plans will be considered at the family rate.)

• Inclusion of a provision that stipulates this tax will NOT affect collective bargaining agreements negotiated through 2017

• Raising the threshold on plans further if health care costs grow faster than expected  from 2010-2013

• Exempting dental and vision costs beginning in 2015 (which could raise the threshold as much as $2000)

• Raising the threshold for plans that have significant numbers of women and/or older workers.

• Preserving the original Senate proposal to raise the threshold for plans with workers in high risk professions, affecting more than 9 million workers.

• Preserving the original Senate proposal that would raise the threshold for plans with retirees age 55 and up.

• Providing transitional relief for employers and workers to adjust to tax:

• Temporarily raising the threshold for high cost states, affecting more than 38 million workers. 
• Providing a five year transition window for state and local employee plans and plans negotiated through collective bargaining agreements before they are subject to the tax, as typically done when federal laws affecting workers are enacted so that agreements will not have to be renegotiated.
• Giving bargaining plans the ability to go into the exchange beginning in 2017.

This has been a long fight but it’s not over yet.  The PALF would like to thank you for all your hard work thus far and encourage you to stay engaged so we may see this through to the finish line.  We appreciate the support provided to us by our local Representatives and look forward to keeping you updated as negotiations progress.  If you would like a PALF representative to attend your local meeting, update your membership, or discuss this issue with you further please do not hesitate to contact us!  Thank you again for all you do.

In Solidarity,

Linda Hatfield, Chair

Pima Area Labor Federation