Feds win reprieve from healthcare excise tax

Federal employees covered under some of the more expensive plans in the Federal Employees Heath Benefit Program now have some breathing room as well.

Federal workers had been left out of an earlier compromise on healthcare reform shielding union workers from a proposed 40-percent excise tax until 2018.

The office of Rep. Gerald Connolly (D-Va.) says he "personally called the White House to express his concern of leaving federal employees out of the deal." An agreement reached Wednesday extends the exemption to federal employees through 2018 as well.

According to Connolly's office, dental and vision benefits would not count towards thresholds set by the tax.

In an e-mailed statement, NTEU president Colleen Kelley credits "the work of House Majority Leader Steny Hoyer (D-Md.), Rep. Gerald Connolly (D-Va.), Rep. Chris Van Hollen (D-Md.) and Sen. Barbara Mikulski (D-Md.) in ensuring that the people who serve our country each and every day were included in the exemption."

Questions about the future of healthcare reform and how it would affect federal employees remain. Kelley notes the exemption would apply to federal employees "if the agreement moves forward."

Tune in to The Federal Drive Friday morning at 8:05 a.m. for an interview with Congressman Connolly.

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