Reports find that excise tax will have reduce benefits and raise costs for employees

WASHINGTON – Two reports released December 8, 2009 by federal unions found that the so-called “Cadillac” tax on higher-cost health plans contained in the U.S. Senate health care bill would actually affect average plans like those under the Federal Employees Health Benefits Program (FEHBP). The reports suggest that the excise tax would result in significant health benefit cuts and shifting of costs to employees, as plans try to avoid the tax.

The reports were released by the American Federation of Government Employees (AFGE), American Postal Workers Union (APWU), National Association of Letter Carriers (NALC) and the Communications Workers of America (CWA). They were joined by Rep. Chris Van Hollen (D-Md.) and Rep. Gerry Connolly (D-Va.).

“These studies show us that the excise tax will further drive up the skyrocketing health care costs and will make it impossible for federal workers to achieve the health security they need.  Read the rest of this entry »