HR News Roundup: Labor Hates Healthcare Reform

Chelsea Rice, September 16, 2013

Organized labor registers its dissatisfaction with the healthcare reform law, stopping just short of calling for its repeal. Meanwhile, as some large employers announce benefits cuts, there's reason to believe they may be outliers.

What's the question employees most want answered about the PPACA?

Bankrate has been taking monthly Health Insurance Pulse surveys, asking questions to measure how consumers are feeling about the health law, their own healthcare, and health insurance. Twenty-eight percent of respondents, the largest group, want to know how it will affect their current health coverage.

'The answer to that depends on where they work and whether or not they belong to a union.

Organized Labor Hates Obamacare
At the AFL CIO annual conference in Las Vegas last week, labor leaders stopped just short of calling for a repeal the law.  

Their beef? Union leaders want labor's plans to be included in the health insurance marketplace. They also want members enrolled in union health plans to be offered cost reduction options such as the PPACA exchange subsidies.  

As the healthcare reform law stands today, health insurance exchanges (marketplaces) do not offer subsidies to union members' multi-employer health plans'.

These multi-employer health plans, which were treated like employer-based plans under the tax code, are now more expensive and offer less coverage than plans on the PPACA's exchanges. Union leaders say this weakens their membership and position in the business community.  

"In a letter from the Treasury Department released Friday evening, the Obama administration said it is willing to work with unions to modify their health plans to meet the exchange standards, and therefore qualify members to receive subsidies.

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