Media Virtually Silent About $10 Billion Union Health Care Subsidy Built Into House Version of Health Care Bill

Some of us have been wondering how viable the Voluntary Employee Benefit Arrangements (VEBAs) set up by the United Auto Workers for its auto industry employees really are. This is of particular concern at the VEBAs tied in to General Motors and Chrysler. What happens to the employer stock these VEBAs own will heavily influence whether they have the money to pay promised benefits.

The answer to the viability question must be "not very," because the House version of health care that has made it out of committee has a $10 billion provision tucked into it that would largely work to back the VEBAs up in case GM and Chrysler are never able to stand on their own -- or in case other high-wage, high-benefit companies, many of which are unionized, follow them into serious financial difficulty.

Maybe it's because $10 billion doesn't mean much any more in an era of trillion-dollar deficits, but media coverage of this "little" provision has been very, very light. A Google News search on "retiree health care UAW" (not typed in quotes) came back with only about 25 relevant items of roughly 100 total results earlier this afternoon. Many of those results are outraged editorials and op-eds. There is precious little original news coverage of the topic.

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