Actors yell cut on proposed tax on expensive health insurance plans (updated)

The generally cozy relationship between Hollywood's unions and the Obama administration is coming under strain.

The source of friction: President Obama's support for a so-called Cadillac tax that is part of the healthcare bill passed by the Senate. The tax, intended to help finance a revamp of the nation's healthcare system,  would apply to the most expensive health insurance plans.

As the Los Angeles Times reported today, in a meeting Monday with Obama, union leaders including James P. Hoffa of the Teamsters and Richard Trumka of the AFL-CIO complained that the tax would harm their members, who often are covered under expensive insurance plans.

Playing a supporting role in the effort is the industry's second-largest actors union, the American Federation of Television and Radio Artists, an affiliate of the AFL-CIO. In a letter last week to Obama and senior congressional leaders, AFTRA President Roberta Reardon and the union's national executive director, Kim Roberts Hedgpeth, warned that the proposed tax would "hurt middle-class and low-wage working union members that have negotiated over the years for health benefits at the expense of higher wages to keep pace with the high cost of healthcare."

Today, Christine Dubois, CEO of the AFTRA Health Fund, chimed in with a similar letter to Obama and others in the Democratic leadership. "The Health Fund welcomes the efforts of this Administration and Congress to deliver healthcare reform and expand access to the nation's health system. However, the health reform bill recently passed by the Senate would penalize funds, like ours, that for decades have reliable provided working Americans with access to healthcare."

AFTRA's health plan has about 17,000 participants, who include actors, broadcasters and other performers. The larger Screen Actors Guild is studying the issue and is expected to take a similar position as its sister union.

Update (Jan. 13, 3:00 p.m.): The campaign to oppose the proposed tax on so-called "Cadillac" health care plans gained more momentum in Hollywood today. In a blistering open letter to members of Congress, Matthew Loeb, president of the International Alliance of Theatrical Stage Employees, which represents Hollywood's technical workers, said the union's executive board was firmly opposed to "any legislation that imposes any tax on hard fought benefits."  Calling the measure a "travesty," Loeb added "that the unions, the true champions of workers and the prime vehicle to move America's health care agenda, could end up worse off than we were before is unacceptable." Similar objections were raised by the Screen Actors Guild, whose leaders sent letters to members of Congress asking them "not to pass health care reform legislation that will place a tax burden on the health plans of the members of SAG."

-- Richard Verrier

Photo: President Obama. Credit: Jewell Samad/AFP/Getty Images.

Comments

[H. Craig Bradley]

HEALTH CARE REFORM UNFAIRNESS?

President Obama's whole guiding "light" on Health Care Reform is politics, but not just his politics. Many of the details in the current proposed legislation have been drafted by Nancy Pelosi and Harry Reid and their staffs.

The idea of "Fairness" is really similar to socialism, or as one could say, average-ism. There are admittedly a number of very favorable health care policies out there which have been negotiated by various employee groups (unions). At the opposite end of the health insurance policy spectrum are these low paying, high deductable, and high premium policies offered to working individuals who are not represented by a strong collective bargaining unit.

So, President Obama's concept of "Fairness" is similar to settling an argument between two three year olds. Get rid of the Cadillac Health Care Plans ("VIP" Plans) and get rid of the low-end individual policies (the "dogs"). The Health Insurance "Outliers" are removed from the market, leaving the rest of the health care insurance policies for choice.

So, just like other Federal government-run programs, Government-regulated services reduce variability and choice, often being characterized by average (sameness), mediocre (drab), and Government-approved (false sense of security or "safety").By the way, Federally approved health insurance does NOT necessarily mean less costly, in the long run at least.It really depends on your metric; how you measure and define "cost". Therein lies the "rub".

[KansasGirl]

This is being done by design. He is intentionally destroying the middle class. Then the elites will truly reign.

[Susan de Vilmorin]

I love the smell of NIMBY in the morning. They were all on board for "hope & change" until they found out they'd be paying for it...suckers.

[Jeff {SkAtEbOaRd}]

It appears now the ENTIRE Nation is awaking to this nightmare. If Unions and Hollywood do not like it and most of the every day Joe's do not either than whom does outside of our off the map leftist officials whom are doing everything in their power to establish a cradle to grave Government. They did it here in California and are now taking it state wide. 2010 will be about REAL CHANGE!

[StewartIII]

NewsBusters: Hollywood Turning Against ObamaCare
http://newsbusters.org/blogs/lachlan-markay/2010/01/13/hollywood-turning-against-obamacare

[MartyM]

You people wanted socialism ... and now you're getting it, and everything that comes with it.

[bobc]

Well now since the Unions got their way, and the rest of us have to pay this tax........how's this for class warfare?

Obama & his comrads are always pitting one group against another!

And you so-called movie stars.......I hope no one enters another movie theatre to support you!

[ThunderD12]

How is it fair to offer an exemption to unions with "cadillac" health plans, but the person who pays for the benefits from similar plans gets taxed. One more step toward the liberal mindset of everyone should be equal, outside of myself and my closest allies.