Teamsters Oppose Baucus Plan to Tax Health Insurance Companies

Hoffa Denounces 35 Percent Excise Tax on Higher-Cost Plans

WASHINGTON, Sept. 16 /PRNewswire-USNewswire/ -- Teamsters General President
Jim Hoffa today said the proposal to impose a 35 percent tax on insurers for
individual health insurance plans worth more than $8,000 is unfair and
unnecessary.

The proposal, introduced by Senate Finance Committee Chairman Max Baucus,
would also levy the 35 percent tax for family plans worth $21,000.

"We're pleased that Sen. Baucus stopped short of taxing American workers
directly, but we fear that ultimately they will pay the price in higher-cost
insurance," Hoffa said. "Middle-class wage earners cannot afford to pay more
for health insurance than they already do. We much prefer the House plan,
which would pay for expanded coverage by imposing a surcharge on those who can
afford it - the wealthiest Americans."

"We will fight to convince the conference committee to drop this excise tax,"
he said.

Hoffa said the proposal misses the point that many plans are expensive because
insurers have too much market power, not because they offer more health care
than cheaper plans.

Hoffa also said the plan includes some laudable proposals, and he welcomed the
progress toward insurance-market reform that is so urgently needed.

"We're pleased that the plan eliminates lifetime limits on coverage," Hoffa
said. "But we're disappointed that it doesn't include a requirement that
employers provide coverage for their employees."

"We do applaud his efforts to expand Medicaid to cover anyone with income less
than 133 percent of the poverty level, including childless adults," Hoffa
said.

Hoffa said the Teamsters support the House plan and the Senate Health,
Education, Labor and Pensions Committee plan.

Founded in 1903, the International Brotherhood of Teamsters represents 1.4
million hardworking men and women in the United States, Canada and Puerto
Rico.

SOURCE International Brotherhood of Teamsters

Galen Munroe of Teamsters, +1-202-624-6911, gmunroe@teamster.org