Tax on Health Plans Will Hurt Union Workers

The 35 percent tax on "high-cost" health plans that some have proposed to pay for health care reform will hit union members and their negotiated health plans hard. Even though the tax would be assessed against the plans, employers would pass those costs on to workers — either by cutting health benefits, cutting wages, or both. Plans valued at more than $8,000 for individuals and $21,000 for families would be subject to the tax.

Here is how the tax would affect union-negotiated Family Plans in four states the first year of the tax, if it passes, and the total impact for the first 10 years:

* To lessen the tax impact in Massachusetts and other high-tax states, the threshold would be adjusted upwards for 2013-2015 by 20%, 10% and 5% respectively.

Source: CWA Research Department