ObamaCare needs an Equality Fix
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Q&A: Affordable Care Act (ACA)
Q: Which part of the Affordable Care Act (ACA) affects UNITE HERE members?
A: The law requires that all individuals purchase coverage by 2014 or face a penalty. Those offered affordable coverage by their employers may continue to receive it. In order to make health care more affordable and accessible, the ACA requires states to establish health insurance marketplaces called exchanges. ACA offers a subsidy to certain individuals to offset the cost of this insurance. Households with annual incomes between 100 and 400 percent of the poverty line ($23,000-$92,000 for a family of four—like those of many UNITE HERE members) — are eligible.
Q: What is the concern?
A: The concern is that UNITE HERE’S Taft-Hartley health plans are not addressed in the law, specifically when it comes to accessing the subsidies. We have deep concerns that:
First, the law creates an incentive for employers to keep employees’ hours below 30 hours a week to avoid health care obligations.
Second, the ACA, as interpreted by the Obama Administration, excludes participants in non-profit health plans such as ours from receiving subsidies for which their income level qualifies them. Those subsidies will go primarily to a few for-profit insurance plans.
Third, not only are we excluded from receiving premium subsidies, non-profit plans like ours will also be taxed to benefit for-profit plans.
These restrictions will make non-profit plans like ours unsustainable, and will rid the health-care market of viable alternatives to the big health insurance companies. As it stands, the ACA will be a multi-billion dollar tax expansion going directly to benefit the for-profit health plans.
Q: What are Taft-Hartley health plans?
A: These plans are governed by laws created by Congress in 1947 that guide labor and management relations. The health plans themselves are mutually agreed upon between union members and participating employers and have provided quality, affordable health care to millions of Americans for over 60 years.
Q: When does this need to be fixed?
A: We are running out of time. We expect a clear indication that the Administration will undertake a fix that works by no later than Sept. 10 of this year. That is when all the major labor unions are meeting at the annual AFL-CIO meeting in Los Angeles.
Q: What is the solution?
A: Most simply, it is to treat not-for-profit plans like ours like for profit plans. UNITE HERE has asked that the Obama Administration interpret the law to allow Taft-Hartley plans to access the subsidies just as for profit plans are able to do.
Q: How does this impact my own health care? What about bargaining?
A: There is no immediate impact on your current health plans, but the future of your plan is in jeopardy if there is no a fix to the problem. UNITE HERE locals will continue to use the power of collective bargaining to negotiate the best health care possible.
Q: What has the response been?
A: The response from Congress and the Obama Administration has been unsatisfactory. The Administration lawyers have said self-insured plans like UNITE HERE’s and some other unions and non-profit organizations cannot access the subsidies under the law.
Q: What else has the UNITEHERE done?
A: UNITE HERE is continuing to lobby the Administration for a more favorable outcome through regulatory interpretation. In addition, the possibility of fixing the law through legislation is being explored, but is much more difficult given the divided Congress. That said, UNITE HERE and several other unions and several other non-profit organizations are stepping up pressure on Congress and the Administration to press for common-sense fixes to be made that offer fair and equitable treatment for unions and other non-profits so that we keep the same health care we currently have.
Q: What can I do?
A: UNITE HERE is asking members and leaders to contact their elected officials to demand that the law is fixed through administrative action. It is essential that our elected officials hear from constituents and voters in their districts in addition to Washington contact. They listen to voters at home more than special interests in Washington.
Q: Are we now opposed to ObamaCare?
A: No. We supported the President’s plan and still support the goal of providing affordable health care to every American. But there are unintended consequences of the law that could jeopardize our plans. All we want is for fair, equal treatment as has already been extended to other for-profit players including business, in this effort. We simply want to keep our plans as the President promised we would be able to keep.
Q: What are we asking members of Congress to do?
A: Demand that the Administration undertake some simple fixes put forward by UNITE HERE and many other unions and non-profit organizations whose plans are in jeopardy by the ACA as presently interpreted.
Q: What is our UNITE HERE leadership saying about the situation?
A: UNITE HERE President Taylor had this to say publicly: “The members of UNITE HERE backed the President’s plan for health care reform because we have long supported the notion that all Americans should have access to quality, affordable health care.
Unfortunately, it has become clear that the Affordable Care Act misses the mark in several areas that affect millions of Americans.
First, the law creates an incentive for employers to keep employees’ hours below 30 hours a week to avoid health care obligations.
Second, the ACA as interpreted by the Obama Administration excludes participants in non-profit health plans like the one in that covers most UNITE HERE members from receiving subsidies for which their income level qualifies them. Those subsidies will go primarily to a few for-profit insurance plans.
Third, in spite of that exclusion, non-profit plans like ours will be taxed to benefit those for-profit plans. These restrictions will make non-profit plans like ours unsustainable, and will rid the health-care market of viable alternatives to the big health insurance companies. As it stands, the ACA will be a multi-billion dollar tax expansion going directly to benefit the for-profit health plans.
The President promised that those of us who like our health care plan would be able to keep it. But unless changes are made, that promise will be broken. We believe that there are common- sense corrections to these problems, and we continue to stand behind real health care reform. But as it stands, millions of Americans, including the members of UNITE HERE, will be hurt by the health care law intended to help them. We must do better.
