http://www.google.com/hostednews/ap/article/ALeqM5jKJGpAVKuBHL_O6b2VExl4XskZcgD9BBLI5O1By ALAN FRAM (AP) – 3 days ago
WASHINGTON — When it comes to the health care battle, President Barack Obama and congressional Democrats are learning that with friends like labor unions, they barely need Republicans to muck things up.
The AFL-CIO, the American Federation of State, County and Municipal Employees and other labor groups are insisting that legislation include government-run health coverage to compete with private insurers. Though popular with the public, the idea — disliked by many moderate Democrats in Congress and virtually all Republicans — was omitted from the bill the Senate Finance Committee approved Tuesday. Obama likes the so-called public option but indicated he could live without it.
As Democratic leaders stitch together bills by five different committees to take to the House and Senate floors, unions also are working to derail a plan in the Finance bill that slaps a $200 billion excise tax on expensive health care policies. Earlier this year, labor helped shoot down a proposal that could have raised hundreds of billions of dollars by taxing health benefits provided by employers.
Either tax provision would provide a major chunk of the effort's $900 billion, 10-year price tag. Without them, it's harder for Democrats to find a way to pay to expand coverage to nearly 50 million uninsured Americans and help low-income people afford their insurance — an irony considering unions' history of fighting for working families.
"We have serious and legitimate concerns," said Chuck Loveless, AFSCME's legislative director. "We're at a critical juncture with regard to health care reform, and we're doing our utmost to help shape the bill."
Undeniably, labor has been invaluable to Democrats trying to muscle a health overhaul through Congress, starting with millions of votes, armies of campaign workers and fat contributions to help elect friendly lawmakers — including Obama himself. This year, unions have supplied hordes of members to press legislators, along with millions of dollars for advertising and lobbying, to build pressure for revamping the medical system.
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