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Why is big labor suddenly virtually opposed to Obamacare after being among its strongest supporters? The answer is easy; you have to read the law to find out what’s in it … after you vote for it. What’s surprising is that it took smart labor leaders three years to figure it out when the big issues were staring them in the face.
1. The employer mandate to provide health insurance is backed up by a $2,000 per employee fine if they don’t. There is no mandate to provide coverage to spouses or retirees. Employers pay say $10,000 to $12,000 a year to provide health benefits, less for single coverage. So, just do the math, $2,000 in fines is always less than the cost of health insurance and perhaps even more a factor for employers that contribute on an hourly basis to union Taft-Hartley Trusts.
2 . Beginning in 2018 the so-called Cadillac tax on high cost health plans goes into effect. While unions won exemption early on for certain physical work type jobs, given that union plans are generally high cost plans, this is still a major concern. Slightly more than half of union membership is now government workers. Public employee plans are by far some of the richest in existence. So, in 2018 unions will have to deal with governments balking at paying a 40% tax (1) and seeking to cut benefits to below the taxable cap on the value of the health benefits.
Union leaders should have read what’s in Obamacare before they threw their political weight behind it.
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(1) I make this observation somewhat in jest. In reality, government, egged on by politicians beholden to unions, are more likely to see the tax as just something to be paid and passed on to you and me the taxpayer.
QUINNSCOMMENTARY 
I have heard the #1 argument repeated many times. Each time I scratch my head.
The ACA penalties make it less attractive to drop coverage, not more. Before the savings was the full employer contribution. Now it is the full employer contribution less the penalty.
What am I missing? There must be something more. Are employers more prone to drop coverage out of spite? Has the renewed individual market diminished the relative advantage of employer plans?
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You have me scratching my head. How were the savings the full employer contribution? Savings to who? The employer pays $10,000 and now drops coverage and pays $2,000 penalty thus the savings to the employer are $8,000 a year.
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