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O-Care Will Hit Union Health Plans With 40% Tax

From the Washington Examiner:

Obamacare socks union health plans with 40% tax

By Paul Bedard | May 15, 2013

Deep in the list of taxes that the president’s Obamacare plan will hit Americans with is a 40 percent excise tax on health plans typical union members have, especially in Midwest states, according to a new analysis.

The Obamacare tax won’t take place until 2018, but when it does it will smack high cost, or so-called "Cadillac" health insurance plans, according to the group Americans for Tax Reform.

Whoops! That wasn’t supposed to happen to Obama’s peeps. Still, wouldn’t you like to see Richard Trumka’s face reading this?

But don’t worry. There will be a union carve out just in time for the next elections.

"This tax will most directly affect union families and early retirees, who are likely to be covered by such plans," said ATR in a review of upcoming tax cuts in the health reform package set to go into effect in January. It will target plans whose premiums exceed exceed $10,200 for an individual and $27,500 for a family.

"Middle class union members tend to be covered by such plans in states like Ohio, Pennsylvania, Wisconsin, and Michigan," said ATR.

Unsaid: Many more people are likely to be hit if insurance firms raise premiums by up to 400 percent after Obamacare kicks in. A House report provided to Secrets said that 17 major insurers said the average premium increase will be 100 percent and others could top 400 percent.

ATR also warned that Americans participating in flexible spending accounts at work will no longer be able to put away whatever they want, thereby cutting their tax bill. The cap will be $2,500 a year, resulting in a $13 billion tax bill over the next 10 years for those who used to put away more than $2,500.

By the time most Americans wake up to these ‘unforeseen’ aspects of Obama-Care we will have long since passed the electoral tipping point between the makers and the takers. (If we haven’t already.)

And it will be too late to try to change anything via the ballot box.

This article was posted by Steve on Thursday, May 16th, 2013. Comments are currently closed.

2 Responses to “O-Care Will Hit Union Health Plans With 40% Tax”

  1. bousquem25 says:

    I’m waiting to see if the idiots vote in a democrat majority in the house to try and “fix” things. I have to wonder if a price control would then come out of it. Watch private insurance go through the roof though more than it already is.

  2. GetBackJack says:

    Was the Plan all along. Construct such a cluster that EVERYONE would beg for mercy from it.

    That’s then the Dems step in and fix what they wrought by passing Single Payer Universal bla bla bla …

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