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Obama To Give Unions Another Obama-Care Waiver

From a cheering Washington Post:

Labor might have just gotten a pass on an Obamacare fee

By Jay Hancock | November 6, 2013

Weeks after denying labor’s request to give union members access to health law subsidies, the Obama administration is signaling it intends to exempt some union plans from one of the law’s substantial taxes.

So Obama (and his news media) lied to us when they said the unions wouldn’t get this waiver? 

Buried in rules issued last week is the disclosure that the administration will propose exempting “certain self-insured, self-administered plans” from the law’s temporary reinsurance fee in 2015 and 2016…

"Certain" plans = union plans. And maybe some other Obama cronies. And this is exactly the waiver Democrats wanted to slip into their so-called ‘clean’ Continuing Resolution, but the GOP stopped them. So Obama just quietly issued an executive order. ‘Stroke of a pen, law of the land.’

Insurance companies and self-insured employers that hire outside claims administrators would still be liable for the fee, which starts at $63 per insurance plan member next year and is projected to raise $25 billion over three years.

That is to say, non-union companies, and companies that are not Obama cronies, will still have to pay this fee.

In September, the White House said the law disallowed health law tax credits for union members on top of their company insurance. Now the administration seems to be moving toward part — but not all — of what labor wants on the reinsurance fee…

In other words, in September Obama said this waiver would be illegal. But now, a mere two months later, it isn’t illegal anymore.

The reinsurance fee made a cameo appearance in the October debt-ceiling negotiations when Senate Majority Leader Harry Reid reportedly proposed delaying it for everybody until 2015. Republicans objected, and the delay was not in the final deal.

Eliminating the reinsurance fee was one of several resolutions adopted at the AFL-CIO’s September convention…

And never mind that what they really wanted was to have Obama-Care completely scrapped. But Obama got Trumka to make them drop that resolution.

But what this really means is union employers won’t have to pay this ‘re-insurance fee,’ which is supposed to keep health insurance companies from going broke after having to cover so many more sick customers. So more insurance companies will end up in the dreaded ‘death spiral.’

But that isn’t important. The union bought Obama the Presidency, and he is staying bought.

This article was posted by Steve Gilbert on Thursday, November 7th, 2013. Comments are currently closed.

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