The American Benefits Council and AFL-CIO urged Senate Majority Leader Harry Reid on Thursday to eliminate a provision within the Senate health care reform bill that threatens employer-sponsored drug coverage for retirees.

The American Benefits Council and AFL-CIO sent a letter to Sen. Reid, insisting the removal of Section 9012 included in the Patient Protection and Affordable Care Act. The provision would limit the tax deduction available to employers for the cost of providing prescription drug benefits to retirees. The provision reverses a policy of the Medicare Modernization Act enacted in 2003 by taxing the 28 percent subsidy that employers receive for providing drug coverage for retirees.

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