The past few years have seen state and local governments looking for ways to manage ever-rising health insurance costs. With the passage of the Patient Protection and Affordable Care Act, (the “ACA”), public administrators face new challenges. From the cost of retiree benefits to the so-called “Cadillac tax”, the Affordable Care Act and rising insurance costs mean re-negotiating collective bargaining agreements. Here’s why.
1. Healthcare benefits are a mandatory subject of bargaining. This means that parties are required to negotiate in good faith and refusing to do so is an unfair labor practice.