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via AFL-CIO NOW BLOG | Send a Letter Today Urging Congress to Pass Quality Health Care Reform
by Mike Hall, Sep 30, 2009
Local unions, central labor councils, state federations and national unions are redoubling their efforts to ensure health care reform legislation—which could be on the Senate floor as early as Oct.
13 and in the full House later in the month—is real reform that
- Controls costs.
- Provides guaranteed coverage.
- Holds insurance companies accountable.
- Includes a public health insurance plan option.
- Requires all employers to pay their fair share.
- Rejects new taxes that would hurt working families—who already are being crushed by soaring health costs.
Let me interject something here concerning that last bullet. Senator Max Baucus, in his “chairman’s mark” he included in the bill now under intense debate in the Senate Finance Committee, a proposal for an excise tax on the most generous insurance plans. That tax is referred to as the Cadillac tax, and it would only effect the plans that meet certain values. These generous insurance plans would be taxed as one’s income is taxed, being a big part of the benefit package offered to an employee.
But the sticky part is that there are union members and others who aren’t rich by any means, but have very expensive health plans from their employer. A union member’s health plan is negotiated whenever contracts expire and are often weighed as heavily or heavier than wage increases, meaning the union rank and file would rather give up a larger wage increase if it means getting a juicier and larger health care package. This new Cadillac tax could kick in now, or after their health benefit package grows in the years to come, and burden them with higher taxes if portective language isn’t placed in the bill now.
What’s good about it? The good part of this Cadillac tax is that it will pay for a big chunk, maybe as much as 35%, of the cost of the health reform bill.
The Cadillac tax is the subject of an article from a couple days ago in Bloomberg.com.
“The discussion of Cadillac plans doesn’t acknowledge ordinary people who gave up salary increases to get high-value plans,” said Senator Debbie Stabenow, a Michigan Democrat.
[Senator Max] Baucus originally proposed a 35 percent excise tax on plans worth more than $8,000 for an individual or $21,000 for a family. He then suggested increasing the tax to 40 percent, while lifting the thresholds to $8,750 and $23,000 for retirees or those in union-heavy industries like coal mining. [Senator John] Kerry wants to raise the thresholds to $9,800 and $25,000 and move them even higher for people between the ages of 55 and 65.
That means that if the premiums for your health insurance package from your employer are more than $25,000 for you and your family, if the cost to the employer to provide super duper insurance is more than $25,000 per year, then you will be liable for a 35% excise tax on that insurance package. In other words, they are treating that insurance as a luxury and as income. Your insurance package would be reported to the IRS and the 1040 forms amended to include a block under “wages, salaries, tips, etc.”. The bad part of the Cadillac tax is that it could hit average Americans hard, something that Obama campaigned against.
Do you want that?
Me neither. So, write letters to these knuckleheads in Congress at let them know it.
Please join union members across the nation in writing your senators and member of Congress to tell them to pass real health care reform. It’s critical working families speak up and provide a loud counter voice to the health insurance industry’s money and influence. Congress needs to hear from people who can tell their lawmakers about their personal struggles with a broken health care system and why we need real health care reform.
Letters from union members, many of which will be written during breaks on the job site, at local union meetings and via special letter-writing events, will be delivered to lawmakers next week when activists and union leaders travel to Capitol Hill to meet with them or during the Columbus Day recess when union activists meet with the representatives in their home districts during the Columbus Day recess.
Contact your local central labor council or state federation for more information on actions in your area. Union members also can go to the Working Families Toolkit (www.WorkingFamiliesToolkit.com, registration required) for sample letters, fact sheets, fliers and more information on health care reform.
We’re also planning a national health care call-in day to Congress on Oct. 7. Union members can urge their representatives and senators to back health care reform that includes a strong public option. Call 1-877-3-AFL-CIO (1-877-323-5246).
So what are you waiting for? You don’t have to be a union member to help with this effort. Write that letter! Tell Congress to pass meaningful health reform with a public option and include protection for wage earner’s health plans from a new tax.
13 and in the full House later in the month—is real reform that

A Second Look | Lots of Polls Out There, Only One That Counts
via WaPo Poll: Majority Wants Public Option More Than Bipartisanship For Its Own Sake | The Plum Line
The Plum Line | Greg Sargent | 10/19/2009, 05:14 PM EST
Everyone talks poll results these days. Polls are being waved around to garner support for this or that. I yawn at polls. I turn my back on polls. I laugh at polls to their face. HAHAHAHAHAHAHA!
Unless it is election year. Then I anxiously snatch and gobble up every poll that comes close enough to my reach.
But, it is not an election year although you couldn’t tell it from all the speculation about 2010 – there will be a conservative ”wave”, there won’t be a wave, blah blah blah. No, this is not 2010, but the big pollsters have to stay employed and so they are being hired to poll the hottest issues.
For what it is worth, this particular poll asks the question “Do you want a public option included even if it means Dems only, or do you want a bipartisan bill that doesn’t?”
It is another poll that supports the public option. There have been many. And for what? If polls really mattered then there would be no debate over the public option. And what of their impact? Do you think that someone is going to burst into the conference room where the Senate compromise bill on health reform is being negotiated and exclaim that opinion for the public option among white working class men ages 30 to 55 has ticked up a point according to so-and-so? Do you? It is a ridiculous scenario.
And would they even care? I doubt it. Here’s why, from The Washington Post:
Senate Finance Committee Chairman Max Baucus (D-Mont.) talks with Nancy-Ann DeParle, President Obama's top healthcare advisor.
The committee in that dark, smoke-filled, back room is made up of Senate Majority Leader Harry M. Reid (D-Nev.) who chairs the event and has mentioned in passing in a wishy-washy manner as he normally does, that he favors some kind of public option, but…. And at the table are Sen. Christopher J. Dodd (D-Conn.), chairman of the Senate HELP Committee who passed a bill earlier this summer with a strong public option, and Sen. Max Baucus (D-Mont.), chairman of the Senate Finance Committee who passed a bill last week with more drama than necessary and in front of cameras, happily flushed the public option down the toilet. So the battle lines are drawn, even-Steven.
But wait, there’s more!
Since when did Emanuel become the White House expert on health care? He’s not. He’s there for muscle.
That is why the group also includes former Kansas Gov. Kathleen Sebelius, who is the Health and Human Services Secretary and Nancy-Ann DeParle, Counselor to the President and Director of the White House Office of Health Reform – the White House Healthcare Czar. All these folks huddled together Monday night in a leadership office (smoke-filled back room) and discussed the “public option, affordability, and other options” a spokesman for Reid said according to TPM.
But if you want to study the results of a poll of possible political illiterates who tell the pollster anything to get them off the phone, then knock yourself out. As for me, here is the only poll on the subject of health care reform that really matters:
Senator Reid – for or against the public option depending on who he’s talking to.
Senator Dodd – for the public option. Period.
Senator Baucus – privately for the public option, but strongly insists that they have to get 60 votes and cannot do so with the public option included. (Cows to the insurance industry.)
Rahm Emanuel – Obama’s mouthpiece. Obama wants the public option but is not willing to demand it.
Secretary Sebelius – involved in a media siht-storm in August, but supports Obama’s position that the public option is needed to provide competition, but is not “the most important element of the reform package”.
Director DeParle – deftly moves behind the scenes to shore up support for the public option for the President, but backs his policy (see above).
I count one for the public option, one against, and four waiting for their cell phones to vibrate.