Andy Stern, International President, SEIU

In another move that may send frustrated voters running to the polls in November, a special deal has been struck between the White House and organized labor unions. According to The Washington Post, the deal would exempt union members from a 40 percent excise tax on “Cadillac” health insurance plans until 2018 – five years after the legislation kicks into gear.

A few other perks in the deal include removing dental and vision benefits when applying the tax, and raising the $23,000 income threshold to $24,000. According to White House officials, the deal took over 15 hours to negotiate and included influential participants AFL-CIO President Richard Trumka, SEIU’s Andy Stern, Change to Win’s Anna Burger, union leaders from various trades, Deputy Chief of Staff Jim Messina, and Vice President Joe Biden.

When asked about the labor union deal, House Speaker Nancy Pelosi told reporters she “had not seen the agreement.” House Majority Leader Steny Hoyer said “nothing has officially been added or subtracted at this time.”

White House Press Secretary Robert Gibbs said resolution of the labor union tax issue “provided a burst of momentum, raising hopes that the end is in sight nearly a year after Obama put health care reform at the top of his agenda.” However, President Obama’s insistence on taxing high-cost insurance plans to help pay for health care reform has some Democratic House members up in arms. They argue the massive tax would not only affect corporate executives, but middle-class families as well.

As the health care bill continues to drop in popularity, many Democratic leaders are becoming increasingly concerned about their future as lawmakers. Senator Mary Landrieu’s “Louisiana Purchase,” Senator Ben Nelson’s “Cornhusker Kickback,” and now special treatment for labor unions that historically support Democratic candidates – in no way line up with candidate Obama’s promise of change. Couple these disparities with staggering unemployment numbers and things really start to look bleak for those up for re-election.

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Sources:
White House Nears Deal on Health Care, Lori Montgomery and Michael D. Shear, The Washington Post
Obama and Top Dems Meet at White House for Negotiations on Health Care, Fox News
Internal Memo Confirms Big Giveaways In White House Deal With Big Pharma, The Huffington Post