June 16, 2009

M E M O R A N D U M

RE:       NTEUís Position Opposing Taxing Health Benefits

SUMMARY:  NTEU has joined a labor coalition opposing the taxation of health insurance benefits. 

            Last week, NTEU joined a number of labor unions in a coalition of those who oppose the taxation of health insurance benefits in the context of national health care reform.  We have agreed to sign on to the attached letter which was sent to Congress last week, and will be further circulated in the weeks to come.

            As you can see, this letter urges opposition to eliminating or capping the tax exclusion for employer-provided health care benefits.  Doing so would adversely impact federal employees and retirees who participate in FEHBP.  Federal employees and retirees have no input in the pricing and negotiations with the insurance carriers and taxing the value of their insurance plans is an unfair and unwise step.  As Congress begins its work on national health care reform, we will be vigilant to this issue. 

                                                                       

                                                                                    Colleen M. Kelley

                                                                                    National President

Health Care Tax Letter

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