Labor leaders and Democratic negotiators reached agreement over the issue of a proposed tax on high-end health plans, people familiar with the discussions said Thursday. The tax has been one of the key issues remaining as Democrats work through differences in the House and Senate health bills passed late last year. The details of the agreement couldn’t immediately be learned.
The Senate bill includes a 40% tax on plans valued at more than $23,000 for a family and $8,500 for an individual. The House bill doesn’t contain that tax. Unions fear it could hit some union members who have negotiated generous health benefits. However, President Barack Obama wants some version of the tax in the final health bill, aides have said.