2/23/10: Yesterday, President Obama announced his health care reform proposals that include improvements over the Senate-passed excise tax provisions that are proposed to offset some of the cost of the health care reform package. NTEU opposed using the excise tax from the beginning and, as we reported last month, we were successful in having FEHBP enrollees exempt from the tax, originally scheduled to take effect around 2013, until 2018. We successfully argued it could have resulted in higher costs and lower benefits for our members in the federal health program.

Under the President’s proposal unveiled today, the excise tax will be delayed for all plans until 2018, and the threshold for taxation is raised from the earlier $8,500 for single enrollees to $10,200 and from $23,000 for families to $27,500. While NTEU prefers not to use any excise tax to fund health care reform and continues to support its elimination from a final bill, we recognize that the Administration’s step to increase the threshold and accept the 2018 date, is forward progress.

While we do not know how or when a comprehensive reform package will be considered in Congress, we will continue to work for a fair deal for FEHBP enrollees.