Why the Health Insurance Excise Tax Is a Bad Idea

By Steve Early and Rand Wilson

Twenty years ago, 60,000 workers from New York City to Maine rallied against healthcare cost-shifting at the telecom giant then known as NYNEX (since “rebranded” as Verizon).

NYNEX was a very profitable, multinational company seeking to capitalize on a demoralizing decade of lost strikes, contract givebacks and widespread unionbusting. At a time when many workers were forced to make concessions, NYNEX strikers held the line for four months and emerged victorious. They successfully resisted the company’s demand that they pay hundreds and eventually thousands of dollars a year for medical benefits. But this singular union win didn’t come cheap. Customer service was disrupted by the work stoppage, resulting in tens of millions of dollars worth of lost wages. Hundreds of strikers were arrested, fired or suspended–and one, Gerry Horgan, was killed on a picket line in Westchester County.

In every other advanced industrial nation, the contentious issue of who pays for medical care was taken off the bargaining table long ago. And no worker would ever lose his or her life defending job-based private health insurance.

To this day, members of the Communications Workers of America (CWA) and the International Brotherhood of Electrical

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