JANUARY 15, 2010: An apparent deal has been struck between the White House and organized labor that exempts public employees and retirees from surcharges on high-cost health insurance plans - the so-called "Cadillac Tax" - until 2018.

Under the compromise, non-exempt health insurance plans, that exceed a total cost of $8,900 for individual plans and $24,000 for family coverage in 2013, will face a tax surcharge. Critics, including our Association, complained that without a public retiree/employee exemption, many government-sponsored plans in Massachusetts could be impacted.

Advocates for the tax on high-cost plans claim that it will help bring down overall health care costs, as retirees, workers and employers find less expensive insurance alternatives. However, critics argue that the tax is unfair to those living in high-cost markets, such as Massachusetts.

Association officials are closely monitoring developments in Washington and will keep members abreast of issues impacting public retirees. As always, the devil remains in the details.