UAW early retiree health subsidies debated

DETROIT, Aug. 24 (UPI) -- Pro- and anti-union forces are taking shots at a U.S. healthcare reform provision to subsidize the claims of some early autoworker retirees, analysts say.

The Detroit Free Press reported Monday the provision calls for the U.S. government to pay 80 cents on the dollar to corporate and union insurance plans for claims between $15,000 and $90,000, affecting retirees ages 55 to 64. The winners, it said, would be United Auto Workers members who opted to retire early as part of the U.S. government-led auto industry restructuring.

Greg Mourad of the National Right to Work Committee told the newspaper the provision is "a shameless case of political payback" by President Barack Obama to his organized labor supporters, contending Obama wants "to force the rest of us to pay billions to cover those unions' healthcare."

"It is not enough money," countered former U.S. Rep. David Bonior, D-Mich., who chairs the board of the labor advocacy group American Rights at Work. "That will have to be supplemented to fill the gap."

The Free Press said U.S. House and Senate proposals have set aside $10 billion to pay some claims for early retirees before other cost-saving measures kick in.