Washington Post is reporting labor leaders have struck a deal with the White House to avoid having union plans taxed under health care reform.  And it really doesn’t look good.

The deal would temporarily exempt union health plans from a significant surtax on unusually generous health policies plans, giving union leaders time to negotiate new contracts, according to sources familiar with the talks. They spoke on condition of anonymity to avoid affecting ongoing negotiations. Additional details of the deal were not immediately available.

So unions apparently struck a deal to duck out of the excise tax.  The tax itself won’t be significantly changed, but unions will have the opportunity to renegotiate their contracts to presumably evade a tax on their members’ health benefits.

This is monumentally stupid.

Sam Stein reported this morning other possible carve outs of the excise tax:

But in a sign of how much labor leaders have dug in their heels, they are also pushing to exempt non-union workers who earn less than $200,000 a year. In addition, negotiators are also working out a separate compromise that could exempt state and municipal employees in right-to-work states.

“This is not simply just a deal for unions,” said one of the sources briefed on the conversations. “This will take the burden off middle-class individuals as well.”

WaPo is a bit short on details, but I’ll be pretty shocked if unions win anything from the White House except a carve out for plans covered by collective bargaining agreements – temporarily! The excise tax itself doesn’t look to be changing, except for the ability for unions to renegotiate plans to avoid it.

Obama’s not in a dealing mood, and wants the Senate bill as close as he can get it.  Coming up with new funding schemes by exempting more and more plans from the excise tax just ain’t gonna happen at this point in the game.  This is looking really bad.

UPDATE from TPM; Trumka has a call at 4:30pm.

Under the terms of the proposed deal, the threshold for families would be raised to $24,000, and would exempt certain benefits like vision and dental, according to a Democratic source.

Collectively bargained plans would be exempted until 2017, to provide workers with a real opportunity to renegotiate their benefits packages, which were designed under current law and exempted from taxation.

The White House appears to have stood its ground, though, on the question of how to index the tax. By indexing it just above the consumer price index, the provision generates a great deal of cost-savings, which are crucial to getting a passing score from CBO.