Union fights Trumpcare’s proposal to tax employee health benefits

This week, members of UNITE HERE will be visiting local offices of their US senators and representatives to tell them to oppose a Republican-proposed tax on employee health insurance benefits.

UNITE HERE is the union of 270,000 workers employed in the the hotel, gaming, food service, manufacturing, textile, distribution, laundry, transportation, and airport industries.

A draft of a Republican proposal to repeal and replace Affordable Care Act (ACA), or Obamacare, began circulating among members of Congress on February 10.

A key feature of this proposal is a new tax on workers’ health care benefits.

The new tax on workers’ health care benefits would replace a tax on the wealthy, which currently helps fund subsidies that middle- and low-income workers use to purchase health insurance on the federal and state insurance market exchanges.

The GOP plan, also called Trumpcare, could be introduced in Congress by as early as this week.

UNITE HERE called Trumpcare’s tax on employee health care benefits a “double-whammy” on working class health care.

“The GOP is replacing Obamacare with Trumpcare, which will destroy the best aspects of the ACA while imposing one of the largest tax increases on the American middle class ever leveled by a political party,” said Mike Casey, chairperson of UNITE HERE’s Health Care Task Force. “Over 177 million Americans who depend on employer based health care for their health and well-being will soon be hit with a double-whammy by the GOP Trumpcare plan: a huge new tax on their health benefits followed by higher premiums, higher deductibles and less access to quality care. The GOP is walking the plank with Trumpcare and will soon be swimming with the wrath of an American middle class furious with their dramatic tax increase and cut in health care benefits.”

While UNITE HERE members are talking to senators and representatives about the health care benefits tax, media ads funded by the Working Americans for Affordable Health Care PAC will be informing the public about the new Trumpcare tax proposal.

Some media ads will begin running this week in five US House of Representative districts in California, Indiana, Missouri, and Virginia.

Those five districts are currently represented by Ann Wagner (R-MO), Steve Knight (R-CA), Darrell Issa (R-CA), Barbara Comstock (R-VA) and Luke Messer (R-IN).

In addition to raising taxes on workers, Trumpcare will undo much of the good done by Obamacare.

Since Obamacare was implemented, 20 million people who weren’t covered by health insurance are now covered. For many of these people, access to health insurance was made possible by subsidies provided through Obamacare.

Trumpcare eliminates those subsidies.

Since Obamacare was implemented, the percentage of people with health care insurance decreased from 18 percent to 8.6 percent.

One of the reasons for this steep decline is the fact that Obamacare made Medicaid available to more low-income workers.

Trumpcare reduces Medicaid funding and ends its status as an entitlement program, meaning that many low-income workers who qualify for Medicaid under Obamacare will no longer be able to enroll in Medicaid.

Since Obamacare was implemented, workers with pre-existing health conditions have been able to get health insurance. Prior to Obamacare, insurance companies routinely denied health insurance coverage to people with pre-existing health conditions, but Obamacare banned this practice.

Trumpcare eliminates the pre-existing condition ban.

In place of the pre-existing conditions ban, Trumpcare would help states fund high-risk health insurance pools for people with pre-existing health conditions.

But high-risk pools have been tried in the past and failed to adequately insure people with pre-existing conditions. “States that ran high-risk pools prior to the ACA found it virtually impossible to actually finance them sustainably while covering significant numbers of people,” reports Thomas Huelskoetter of Think Progress.

As part of its efforts to inform the public about Trumpcare’s shortcomings, UNITE HERE called out members of Congress who want to repeal Obamacare and replace it with Trumpcare.

“Members of Congress like Ann Wagner, Steve Knight, Darrell Issa, Barbara Comstock and Luke Messer and all the rest get first-class health care thanks to US taxpayers, and they get it for life,” said Casey. “Yet they have the audacity to consider asking those same taxpayers to pay more in taxes in order to settle for second-class health care. We will fight them in Congress and see them at the ballot box.”

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