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Obama Gives Unions ‘Re-Insurance’ Carve-Out

Firs we have this from a shamelessly spinning Reuters:

U.S. government plan adjusts 2014 risk payments for health insurers

By Caroline Humer, Jeffrey Benkoe | November 26, 2013

(Reuters) – The U.S. government has issued a proposal that would likely increase risk payments in 2014 to health insurers offering plans on the Obamacare exchanges after the companies complained a recent policy change allowing people to keep their insurance policies had changed the financial equation.

The rule, published on Monday in the Federal Register, lowered the threshold at which risk payments kick in for the sickest health plan members. The government proposed paying insurers 80 percent of claims greater than $45,000 in 2014. Previously the lower limit was $60,000…

When Obama announced a plan about two weeks ago to allow individuals to keep their current plans longer, insurers complained it would remove even more people from the pool of applicants and asked for adjustments to the risk payments.

This is another example of how our news media are really just public relations firms for Obama. Reuters pretend this change is due to letting people keep their old bad plans. When, in reality, it is to compensate for the money the insurers are going to lose because of another quiet rule change. Which exempts the unions from this re-insurance fee. Which is another huge carve out for Obama’s union cronies.

As Fox News rightfully reports:

Administration accused of giving unions ‘special treatment’ with exemption from ObamaCare fee

By Judson Berger | November 26, 2013

The Obama administration is being accused of giving labor groups "special treatment under the law" after formally proposing a change that could exempt union health plans from a pesky ObamaCare fee.

Sen. John Thune, R-S.D., who flagged the obscure rule change after it was filed in the Federal Register (see page 70), blasted the exemption as "crony capitalism at its worst."  "Unions are now experiencing the ugly reality of this law, and they want out," he said in a statement.

Indeed, the AFL-CIO has fought against what is known as the "reinsurance fee" in the Affordable Care Act. The temporary fee would kick in next year and is meant to raise $25 billion over three years, to help pay for the cost of people with pre-existing conditions signing up for coverage through the ObamaCare exchanges.

The proposal filed Monday would exempt certain self-insured plans — those that do not use a third-party administrator for core functions — for 2015 and 2016… Republicans say the change is clearly aimed at unions, particularly after labor leaders made a high-profile push to extract some relief from the health care law…

Thune and a dozen other senators are pushing a bill to bar the administration from exempting unions. Thune’s office said that the senator is concerned the exemptions in 2015 and 2016 will end up forcing other self-insured plans to pay more…

By the way, these kind of shenanigans are the very thing that the DC Circuit court might have stopped. But they won’t be able to, once Obama stacks it with his three appointees.

This article was posted by Steve Gilbert on Wednesday, November 27th, 2013. Comments are currently closed.

One Response to “Obama Gives Unions ‘Re-Insurance’ Carve-Out”

  1. Enthalpy

    Pol Pot (liar-in-chief) and czars, fighting the fight for truth, justice, and the American way, have found a way for the unions-the carve-out. ObamaCare is an unconstitutional fraud that deserves the miserable death it seems to be headed for. Now if we can just send Obama and most of the RNC along with it, we’ll be on our way.




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