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Protest against health insurers need to have both a
union and community face—like this march both against foreclosures and for the Employee Free Choice Act earlier in March in Lynn, Mass. |
The peasants are filing their pitchforks to a fine point in anticipation of an attack on the palace—and the target of their ire is not what we might have intended. At this critical moment in the health care debate, more than a few working folk are taking a suspicious look at the health care reform efforts of Senate Democrats, President Obama—and their own unions. A headline in my local newspaper, the Lynn Item, helped stir the tempest: “Obama Open to Taxing Benefits to Fund Reform.”
Vincent Panvani of the Sheet Metal Workers (SMWIA) warns:
If any of these Democratic Senators vote for this, they’ll be out in 2010, and it will be used against Obama….[Y]ou’re taxing the middle class.
Teamsters President James Hoffa calls taxing health care benefits “the poison pill that will kill reform.” The Laborers have attack ads at the ready. And Donna Smith, an organizer and legislative representative for the California Nurses Association/National Nurses Organizing Committee (CNA/NNOC) notes that insurance companies continue discriminatory rates for older workers and ongoing rescissions of benefits—that is, targeting people with more than 1,400 medical conditions for “opposition research” investigations so their benefits can be cut off. “Ugly stuff,” she puts it. (At a health care forum in Lynn, Mass., last week, Rep. John Tierney reported that in congressional hearings he asked every insurance company if they would stop these viscous targeted rescissions—each one said “No.”)
During the New Deal, when President Roosevelt proposed raising taxes on the wealthy, Boston department store tycoon Edward Filene commented:
Why shouldn’t the American people take half my money from me? I took all of it from them.
I am not sure where such broad-minded CEOs disappeared to, but they certainly are in short supply today.
Instead, we have leaders like Republican Sen. Chuck Grassley. Discussing taxing workers’ health care benefits, he commented:
We shouldn’t be subsidizing high end health insurance policies that drive up inflation in health insurance.
I guess he missed the national unity memo.
Grassley provides an important revelation. People who have given up wages to pay for their health care—as workers like me at General Electric Co. (GE) have done again and again—and who are already paying thousands of dollars for their health insurance in contributions, co-pays, etc., are actually the problem! Who knew? I invite Grassley to Lynn to explain this to the family of the IUE-CWA Local 201 retiree who pulled his own teeth with a pair of pliers since he lost dental and vision care when he turned 65.
Funding health care reform has always been the fulcrum of the contest. The insurance companies, hospitals and drug companies become advocates of “reform” if and when it simply means a massive transfer of public funds into their hands. The American Hospital Association and American Health Care Plans spokespersons reneged on the promises to reduce costs they had announced at a much-hyped appearance with President Obama and SEIU’s hapless Andy Stern—just three days earlier! (Hey, “voluntary” controls worked with the banks and OSHA, right?)
Profits at the 10 largest public ally traded health insurance companies rose 428 percent between 2000 and 2007. And they intend to keep them climbing.
The “Massachusetts Plan,” which was condemned by the AFL-CIO when it was first passed, fits the “feed-the beast” mold. To say, as the sole union defenders of the Mass Plan in the state suggest, that the “Mass Plan does some good things but it just didn’t deal with costs” is like saying poison ivy is a pretty plant if it wasn’t poison. The Mass Plan is collapsing of its own financial weight. Its cost has doubled in two years to $1.3 billion. Debate here now centers on whether to eliminate dental care or eliminate coverage for certain groups of legal immigrants.
Which brings us back to the gathering peasants. There are three distinct groups of union members girding for revenge if the Republicans and conservative Democrats manage to cow Obama into taxing health care benefits. First are the single-payer advocates, who have argued from Day One that the only way to “reform” is to start by fighting for the best solution, not start from a dense compromise that will inevitably be moved toward the health care millionaires in the interest of “bipartisanship.”
Second are the conservative union members who have told me from the beginning that the inevitable outcome of the union campaign will be the “guv’mint” taxing the working stiff to pay for insurance for poor people. This is a successful formula right-wingers are using to drive a wedge between “working people” and “the poor.” The crisis of legitimacy of the government will worsen, the right-wingers will be the beneficiaries. Rush Limbaugh and the Fox crowd are drooling.
Finally, there is the large middle group that is just starting to pay attention—and they are focused on the Obama Taxing Our Benefits headlines mentioned above. A member of the Local 201 Legislative Committee who is talking one on one with our members, gathering letters to legislators on health care reform, reports the best motivator is: “Tell them not to tax our benefits!”
Comments by Senate Majority Leader Harry Reid (D-Nev.) offer some hope. On July 7, he ordered Finance Chairman Max Baucus (D-Mont.) to drop a proposal to tax health benefits and stop chasing Republican votes on a massive health care reform bill. There is still time to avert a train wreck before it takes us all down. First of all, the focus needs to be on the health care pimps, and it has to be harsh. SEIU’s “Enemies of Change” campaign, which includes targeting banks, is a good model.
Second, we need street actions, protests at the headquarters of insurance associations, corporate drug hustlers and hospital barons. The face of these protests must include both union and nonunion people. Otherwise we open ourselves to the right-wingers assault and present ourselves as a selfish “special interest.”
What we have been doing so far focuses on lobbying elected representatives, who are not the best public face of the problem (although, yes, that work needs to be done).
Finally, we need to spell out our bottom line. “We don’t want to let them say ‘Big Labor’ killed health care reform since they didn’t want to pay their share,” I’m told. But a timid response leads with our chin.
The key is to get out front with our position now. I recently spoke to Lynn United for Change, the local Obama Organizing America group. I told them straight up:
If the President signs a law that taxes our benefits, my members won’t vote for him again.
This was a group created to elect Obama, and they had no problem with my presentation. But we can’t start explaining this in September, when the wreck may be upon us. We have to say, right now, that we will kill any effort to tax our benefits as yet another transfer from our pockets to the health care profiteers. Or for that matter, we’ll kill any so-called reform that does not introduce what the union movement has called a “robust public plan,” in the unlikely event that such a plan survives Congress. Since the Blue Dogs and New Democrats in the House, with a total of 131 members, already have explicitly opposed any public plan that might actually work, it’s hard to see where the votes for this “robust” plan are going to come from. We are a movement of negotiators—and we need to understand our own bottom lines.
It is understandable the president is calling on all parties to come to the table. He ran on a platform of bringing people together, ending petty political bickering, and so on. But that’s not our problem. I’d prefer a slogan of “No More Blood to the Vampires!” than “Kumbaya.”
Sure, we’ll kill health care reform, if it is no better or even worse than what we have now. If we don’t, keep an eye out for the folks with the pitchforks.
For a union movement shunned and disrespected for so long, it’s a breath of fresh air to have the ear of the president. We testify at all the key committees. Our opinions are solicited. A seat at the table is most welcome. But out in the fields, the peasants are taking a look at what’s on the plate. And it isn’t pretty.
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