The presidents of the three of the nation's biggest labor unions, who say they have been stonewalled by the White House, are asking Democratic leaders in Congress to change the new health-care law, which they say would otherwise devastate union-sponsored health-insurance plans.
Since last year, union leaders have complained that many of the law's requirements will drive up costs for union-sponsored health-care plans that are managed jointly by unions and mostly small employers, making unionized workers less competitive and potentially causing unionized employers to drop the plans that cover more than 20 million people.
To offset the expected rising costs of these "multiemployer" plans, several union groups want their lower-paid members to be able to remain on the plans while also getting access to federal insurance subsidies to be provided under the law. Their problem is that under the law, the subsidies were designed to be used by low-income workers who don't have employer coverage, as a way to help them buy private insurance. The bottom line: they want lawmakers to apply the subsidies to people in the multiemployer plans.
In a letter dated July 11 to Sen. Harry Reid and Rep. Nancy Pelosi, union officials also said they are concerned the Affordable Care Act is leading employers to cut workers' hours below 30 hours a week so that workers can avoid requirements to provide health coverage for those workers in the future.
Without changes, the health-care law "will shatter not only our hard-earned health benefits, but destroy the foundation of the 40 hour work week that is the backbone of the American middle class," the union officials wrote.
The letter, which contains some of the harshest language to date aimed at the Obama administration over a law unions supported, was written by James Hoffa, president of the International Brotherhood of Teamsters; Joseph Hansen, president of the United Food and Commercial Workers; and D. Taylor, president of Unite Here, which represents hotel and food service workers.
It comes days after the Obama administration acceded to employer requests to delay a provision requiring bigger companies to provide insurance coverage or pay a penalty—a move that has further rankled union leaders. That rule, which had been scheduled to take effect in early 2014, has been pushed back a year.
The union officials called the delay "disconcerting." and a "huge accommodation for the employer community." They also said union arguments have been "disregarded and met with a stone wall by the White House."
The union leaders also had tough words for the Democratic leaders, reminding them that unions had repeatedly backed their political campaigns and sending an ultimatum. "Time is running out: Congress wrote this law; we voted for you," they wrote. "We have a problem; you need to fix it."
A senior administration official said the law will increase access to affordable health care for tens of millions of Americans and improve coverage for eight out of 10 currently insured. "We welcome ideas on ways to improve the law, including suggestions on how to support the coverage offered by multi-employer plans today," she said.
Representatives for Sen. Reid and Rep. Pelosi didn't respond to requests for comment.
Leigh Strope, a spokeswoman for the Teamsters, declined to comment beyond the letter, saying, "The letter speaks for itself." A spokeswoman for Unite Here declined to comment. A spokesman for the UFCW couldn't immediately be reached to comment. Last week, Richard Trumka, head of the AFL-CIO, called the administration's delay of employer penalties "troubling" and said he hoped the White House would be as accommodating to union concerns.
Unions argue that several other parts of the health-care law would disadvantage "multiemployer" health plans administered by unions and employers. For instance, the law's lack of penalties for employers with less than 50 employees could force companies to drop insurance in heavily unionized sectors like construction, unions argue. In general, unions say the health plan's impact on multiemployer plans needs to be clarified.
Write to Kris Maher at kris.maher@wsj.com and Melanie Trottman at melanie.trottman@wsj.com
A version of this article appeared July 12, 2013, on page B4 in the U.S. edition of The Wall Street Journal, with the headline: Union Heads Seek Change To Health Law.
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