Union Concerns About Cadillac Policy Tax May Produce Adjustments

After the President met with union leaders yesterday, ways of softening the blow of a 40 percent tax on so-called "Cadillac" insurance policies are starting to be considered. The unions argue that their members have won that coverage in lieu of wage increases in negotiations. While President Obama remains committed to a tax on high-end policies (as opposed to a tax on those who earn more than a million dollars a year as proposed in the House bill), he will consider a compromise such as raising the cost threshold on taxable policies from $23,000 a year for a family to $25,000. You can read more here.