via Wall Street Journal
Detroit’s negotiations this summer to reach a new four-year labor deal won’t just be an argument about wages. Generous health-care benefits for about 135,000 unionized factory workers are at risk of being cut to prepare for the Affordable Care Act’s “Cadillac” tax.
Health care has long been a fiercely protected benefit for United Auto Worker members, remaining generous even as the union has made other concessions. But the so-called Cadillac tax on companies with high-cost health plans is scheduled to take effect in 2018.
The law imposes a 40% excise tax on the annual cost of health care above $10,200 for individual coverage and $27,500 for family coverage. It is unclear how many UAW assembly workers have plans with costs exceeding those amounts, but industry officials say penalties could be significant…
To read the full WSJ article CLICK HERE