Labor Unions address Democratic leaders
July 15, 2013
Once strong supporters of the legislation now voice concerns.
Three major U.S. unions, including the influential Teamsters, sent an open letter to Congressional leaders stressing their concerns for the legislation that they have been supporting. With the clock ticking down on many deadlines for the implementation of the PPACA, it is clearly becoming visible that many individuals and families will be in a more difficult financial position to obtain health coverage due to provisions in the legislation.
The letter does not address incidental or fringe elements of the PPACA. Rather, it drives right to the heart of the matter, claiming that the legislation is on track to:
destroy the very health and wellbeing of our members along with millions of other hardworking Americans.
This letter comes out just days after the federal governments decision to delay the implementation of the employer mandate components of the PPACA. While employers and insurers scramble to understand and comply with the requirements, the unintended consequences are emerging.
Carriers are taking on additional risk for insuring those with Pre-existing conditions. Consequently, they are planning on raising rates significantly for individual policies starting January 2014. On the employer side, large organizations are navigating through potential penalties while being forced to make fiscal decisions for their organizations well-being. In order to avoid paying the federal penalties, many of these large employers are reducing employee working hours to under 30 per week. That allows the employers to avoid both paying the penalty and providing coverage.
The net-net result being that many employees will be working less, paid less, left without employer provided insurance and then being pushed into individual policies that are higher priced than they are today---or in turn be faced with their own penalties for failing to have qualified coverage.
Here is the link to the letter that was published in the Wall Street Journal.