Unions Seek Changes to PPACA

The WSJ reports that the heads of three large labor unions are pushing Democrats in Congress to make changes to the Patient Protection and Affordable Care Act.

Since last year, union leaders have complained that many of the law’s requirements will drive up costs for union-sponsored health-care plans that are managed jointly by unions and mostly small employers, making unionized workers less competitive and potentially causing unionized employers to drop the plans that cover more than 20 million people.

To offset the expected rising costs of these “multiemployer” plans, several union groups want their lower-paid members to be able to remain on the plans while also getting access to federal insurance subsidies to be provided under the law. Their problem is that under the law, the subsidies were designed to be used by low-income workers who don’t have employer coverage, as a way to help them buy private insurance. The bottom line: they want lawmakers to apply the subsidies to people in the multiemployer plans.

In a letter dated July 11 to Sen. Harry Reid and Rep. Nancy Pelosi, union officials also said they are concerned the Affordable Care Act is leading employers to cut workers’ hours below 30 hours a week so that workers can avoid requirements to provide health coverage for those workers in the future.

Without changes, the health-care law “will shatter not only our hard-earned health benefits, but destroy the foundation of the 40 hour work week that is the backbone of the American middle class,” the union officials wrote.

UPDATE: In a related story, the WSJ reports on the rise of part-time employment in the hospitality industry.