From The Washington Post’s 44 blog, Lori Montgomery reports, “White House, unions reach deal on taxing insurance coverage“:

The White House has reached a tentative agreement with labor leaders to tax high-cost health insurance policies, sources said Thursday…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.

Hat tip Daniel Foster, The Corner, who cites a report from CNN’s Steve Brusk that the deal would delay taxes on health-care policies for union members, state and local workers until 2017.

At Kausfiles, Mickey Kaus had suggested that the President might win labor’s support for the excise tax on high-value plans by promising to help pass some form of Employee Free Choice Act passed. But that’s a difficult promise to keep politically.

Labor will just have to be satisfied with getting everything else it wants.

UPDATE (1:30 p.m.): Politico, “Source: Tentative deal on Cadillac plans“

All this talk of taxing Cadillac insurance plans has us humming Bruce Springsteen’s “Pink Cadillac.” Here’s Bruce singing it from his Verizon Center show in Washington, D.C., last Nov. 2.

And good for them.

From The Washington Post, “Union leaders step up fight against excise tax“:

Federal employee union leaders threw the second of a one-two punch at a Senate plan to tax health insurance premiums on Tuesday, saying it would mean significant benefit cuts and higher health costs for workers.

The presidents of the American Federation of Government Employees, the American Postal Workers Union and the National Association of Letter Carriers joined with the Communications Workers of America, which is leading organized labor’s effort to defeat the proposed excise tax on premiums.

Here’s the news release, “Federal Unions Release Two Reports on the Detrimental Impact of the Senate Excise Tax on FEHBP Health Plans“:

WASHINGTON – Two reports released today by federal unions found that the so-called “Cadillac” tax on higher-cost health plans contained in the U.S. Senate health care bill would actually affect average plans like those under the Federal Employees Health Benefits Program (FEHBP). The reports suggest that the excise tax would result in significant health benefit cuts and shifting of costs to employees, as plans try to avoid the tax.

Many manufacturing companies would also be affected.