http://www.msnbc.msn.com/id/34859430...h_care_reform/
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While not all details were set, it appeared the union leaders had backed down on their outright opposition to a new tax, and the White House had agreed to several concessions to mollify their concerns.
In a significant victory for unions, the 40 percent excise tax would not apply to policies covering workers in collective bargaining agreements, state and local workers and members of voluntary employee benefit associations through Dec. 31, 2017.
Rep. Joe Courtney, D-Conn., and others said the tax would apply to fewer plans than was the case in the Senate-passed bill and would exclude the value of dental and vision coverage. They added it would provide an exemption for residents of states where the cost of health care is particularly high, as well as for employees of high-risk professions.
A union official familiar with the details said the tentative agreement would raise the threshold on insurance policies subject to tax from $8,500 in the Senate-passed bill to $8,900 for singles and from $23,000 to $24,000 for family coverage. Even the new thresholds would be subject to adjustment if unexpected rises in health care occur by the time the plan is effective, this official said.
Additionally, AFL-CIO President Richard Trumka told reporters that beginning in 2017, all health plans — union and nonunion — would be permitted to seek coverage in insurance exchanges that would be set up under the bill to allow consumers to shop for coverage issued under federal regulations.
White House officials disputed that, saying the issue was not settled.
Originally, the tax included in the Senate bill was estimated to raise $149 billion through 2019. Trumka said the revisions would reduce that amount by $60 billion — money that negotiators would have to find elsewhere or else reduce the coverage in the legislation.
While the tax would be applied to high-cost plans, the Congressional Budget Office has said its principal impact would be to prompt consumers to purchase lower-value coverage. That, in turn, would raise the income tax they pay by reducing the deduction they can take for health care expenses.