New Health Care Legislation

[jim50321]

Since it appears that HCR will pass both houses and from what I have been reading the tax on "Cadillac" plans will be part of the final bill, how do you think this will affect union employees? Will there be immeadiate changes such as higher co-pays and deductibles? I don't know what changes can be made within the framework of the current contract or would changes have to wait untill the next bargaining agreement?

I am assuming that UPS will pass this tax onto employees either through higher co-pays and deductibles, requiring us to start paying for a portion of benefits or negotiating smaller wage increases in future contracts.

What do others see for the future?

 

[moreluck]

Well, if you're in Nebraska, you don't have to worry. You'll be taken care of forever. If they had an ocean, I'd move to Nebraska!!

 

[newupsers88]

I would say that it will not be implemented for a few years so that it will not matter until its time for the next contract.

 

[dannyboy]

its simple, and no contract issue

your amount paid for insurance will be taxed to you as regular income. that means you will pay income, ss, state, and other taxes on what ups pays for you for insurance. they will have to kick in the part for ss, but that is about it.

so look for your take home to be smaller than what it is now, and your income bracket to be upped several notches.

and that is it in a nutshell for the union members. i would suspect that company insurance would follow suit?

d

 

[24601]

How much does UPS spend on health coverage for its employees? I am sure it varies from area to area, but does anyone have an idea?

 

[Upsdriver88]

We should all be concerned about this. Refer to Article 34, Section 1, paragraph (h) of the UPS Master Agreement : In the event that national health care legislation is enacted, the parties agree to meet and discuss any ramifications of that legislation on the provisions of this Article. With the economy the way it is and UPS cutting everything it can, I would not be suprised if the company tried to change our health and welfare plan. Just a thought, you have to be a lawyer to understand some of the verbage in the contract.

 

[airbusfxr]

This is one of the main issues that has caused the aircraft mechanics and UPSCO to have a 4 year expired contract.

 

[over9five]

Didn't take long for Obama and the Democrat party (Labors friends, yeah right) to stab us in the back.

 

[brownmonster]

A Cadillac plan is one that costs 23,000 a year or more. Any thing over that amount gets taxed at 40 percent.

 

[moreluck]

There's already an extensive Health Care thread in Current Events

 

[jim50321]

its simple, and no contract issue

your amount paid for insurance will be taxed to you as regular income. that means you will pay income, ss, state, and other taxes on what ups pays for you for insurance. they will have to kick in the part for ss, but that is about it.

so look for your take home to be smaller than what it is now, and your income bracket to be upped several notches.

and that is it in a nutshell for the union members. i would suspect that company insurance would follow suit?

d

From what I have read, employees don't pay the tax, the tax is levied on the insurance provider, in our case UPS. The government will not with pay as they do with FICA and medicare but UPS may "keep" part of your pay to offset the tax depending on how the contract is interpreted and how much the union agrees.

Does anyone know how to find out what our current benfits packgae is worth? IIRC they used to provide a number around contract time as a bargaining tool to educate employees on their total compensation besides wages.

 

[jim50321]

There's already an extensive Health Care thread in Current Events

I wa going to post on that thread but it seems mostly concerned with the politics of HCR. I thought this was a better place to discuss its ramifications towards employees not that it is all but a done deal.

 

[TheDick]

From what I have read, employees don't pay the tax, the tax is levied on the insurance provider, in our case UPS. The government will not with pay as they do with FICA and medicare but UPS may "keep" part of your pay to offset the tax depending on how the contract is interpreted and how much the union agrees.

Does anyone know how to find out what our current benfits packgae is worth? IIRC they used to provide a number around contract time as a bargaining tool to educate employees on their total compensation besides wages.

I'm sure UPS will inflate the total cost(23,000$/yr?) as a bargaining tool when in fact they get the great rate thru contracts with insurance co. Unintended consequences to a great idea. SF chronicle had a good article about american comp. helping americans go abroad to get surgical procedures like transplants, hip surg, things that they cant afford because of thier co-pays or cost of ins per year. You'd be surprised how much the mark-up is at a hospital. If you asked how much a procedure at ur local hosp is they'd laugh cuz they dont want u to know.

 

[Cezanne]

Does anyone know how to find out what our current benfits packgae is worth? IIRC they used to provide a number around contract time as a bargaining tool to educate employees on their total compensation besides wages.[/QUOTE]Oh Boy, with that last question you sure know how to open a can or worms. My best guess estimate would be the weekly monetary contribution (per Article 34, Master) that is or should of been going into our Health and Welfare/Pension trusts whether it be company or union controlled.

 

[JustTired]

It is not a done deal yet.

The House bill gets the money by taxing those that have income of over $500,000 ( $1 million joint). The Senate bill gets it by taxing Union healthcare plans (cadillac plans). The actual method used will have to be worked out when the bill is in conference (House/Senate combined bill). I'm sure it will be one or the other or a combination of each. Time will tell.

 

[bbsam]

Didn't take long for Obama and the Democrat party (Labors friends, yeah right) to stab us in the back.

How does this stab you in the back?

 

[nhguy]

JUST TIRED-

That's the biggest concern of all. In all probability the House and Senate will find a way to stick it to all in the middle class!

It's a disgrace to all Americans that these jokers are pushing this thing in such a hurry. It's my feeling that anything they come up with will not be an improvement. We will have less coverage and it will cost us all more!!!

 

[jim50321]

How does this stab you in the back?

During the presidential election John McCain said he would tax so called cadillac health plans. Obama said he opposed doing any such thing. If taxing those plans stays in the HCR bill,does anyone really think Obama is going to stand by what he said and veto the bill?

 

[JustTired]

JUST TIRED-

That's the biggest concern of all. In all probability the House and Senate will find a way to stick it to all in the middle class!

It's a disgrace to all Americans that these jokers are pushing this thing in such a hurry. It's my feeling that anything they come up with will not be an improvement. We will have less coverage and it will cost us all more!!!

That is definitely a possibility.

My concern is the lack of cooperation between parties. I have no problem with someone being against the bill. My problem is when there isn't any alternatives offered up by those opposed. My other concern is when one or two senators (from either party) can hold the whole bill hostage until they get what they want. I don't think many are acting in the best interest of the country as a whole.

I'm totally against the idea of career politicians. I think they should all serve one 6-year term and be done. At the most be limited to two 4-year terms. There is a reason the presidency has term limits and that same reasoning should apply to congress as well.

This bill will shift some of the cost burden to those more fortunate. The matter will be which one of the fortunate (the rich or the middle class) will foot the bill. If I was a betting man......you know where my money would be.........

 

[Channahon]

Here's some info I have read, however, not sure if accurate as it seems changes are made all the time in Washington.

The tax burden to all insured will begin as soon as the bill is passed, although the actual program is not to start until 2012.
An election year at that, good timing or strategy for re-election of Obama?

So the government is looking to collect the taxes ahead of time, for a couple years, and the monies will probably be spent and gone when the time comes to implement the program. Similiar to Social Security and Medicare which are almost broke in 2009.

And if that's not bad enough, there is talk of a "means testing" rumor, that your social security benefits may be reduced, based on your retirement income. So as you and your employer paid into your account, and worked responsibly all your life, the government will thank you by reducing your benefit, based on your retirement pay. How is that for a stab in the back?