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…
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