Senate Shutdown Proposal Would Exempt Unions From Mandatory Obamacare Tax For One Year

American flag and cash with stethoscope

The Senate version of an agreement to end the Federal government shutdown includes a concession to appease unions whose nonplussed leaders became more critical of the Affordable Care Act — a piece of legislation they once ardently supported — in the run-up to its Oct. 1 implementation.

According to The Hill, the Senate agreement would delay an Obamacare tax — the so-called “reinsurance” fee — by one year.

Originally conceived as a three-year implementation tax, the reinsurance fee is designed to stabilize individual Obamacare premiums by generating revenue that is supposed to be pumped into the funding pool as more sick people enroll for new insurance policies, which by law must accept patients with pre-existing illnesses.

From The Hill:

The reinsurance tax figured prominently in discussions at a recent AFL-CIO convention, where workers passed a resolution demanding changes to ObamaCare.

The White House recently denied labor’s top priority on ObamaCare, ruling that union health plans are not eligible for the new subsidies because they are already helped by the tax code.

Democrats could be pushing to delay the reinsurance fee for one year as an olive branch after that apparent slight, though it could also create trouble for insurers on the marketplaces.

Even though the tax is mandatory for all group health plans, unions have successfully twisted the arms of many of Obamacare’s longtime Congressional supporters, persuading Senate backers of the exemption that union enrollees’ policy premiums will needlessly increase — despite the fact that the tax is mandatory for all group health plans.

Under the law, companies that offer health coverage are required to pay a reinsurance fee of $63 per covered person next year, with the fee tapering off over the subsequent two years.

Personal Liberty

Ben Bullard

Reconciling the concept of individual sovereignty with conscientious participation in the modern American political process is a continuing preoccupation for staff writer Ben Bullard. A former community newspaper writer, Bullard has closely observed the manner in which well-meaning small-town politicians and policy makers often accept, unthinkingly, their increasingly marginal role in shaping the quality of their own lives, as well as those of the people whom they serve. He argues that American public policy is plagued by inscrutable and corrupt motives on a national scale, a fundamental problem which individuals, families and communities must strive to solve. This, he argues, can be achieved only as Americans rediscover the principal role each citizen plays in enriching the welfare of our Republic.

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  • pnwdave

    If this is the Law of the Land, as the Deomcrats keep insisting, then NO ONE should be exempt from…Beaureucrats, elected officials, big business or big labor!

    • tim

      It is discrimination, urge all your friends and relatives to sue the feds for discrimination!!!!

  • crossrammed302

    This is so typical…exactly by we are in the crisis with our government now. I’m sick to death of the favoritisim. Americans can’t be equals until we are treated equally. I hope this pi$$es everyone else off too.

  • TexasOlTimer

    So the Senate wants to exempt the unions that were for Obamacare – but when the House added Congress, the President and their staffs into the bill without the subsidies, the Senate said no way. So the Dems in the Senate that were all for Obamacare want it for the little guy struggling to make a living but not for unions or themselves.

    Socialism is great as long as you inflect pain on the other guy – not so great if you are caused pain.

    • terry

      perfect call! the shifting of ‘participants’ is entertaining as the true colors of these jackasses reveal themselves.


    It gets more corrupt & satanic as it goes along. There has never been anything like this bill….provisions changed illegally at the president’s politically motivated whims, nobody who can understand the whole thing, pushed through to a vote in Congress by breaking all kinds of parliamentary protocol, squashing of basic freedoms & conscience protections & loaded with numerous illogical taxes, fines, regulations & codes, a Supreme Court led by a chief justice who lost his brains & ethics & re-wrote the law for the govt. & passed it off as constitutional….yet, when some in Congress want to properly & legally repeal or defund it they are labeled as “radical anarchists” by the DEMs or “stupid wasters of time” by the GOP!!!

    May God Help Us!!!


    Just another example of the fact that Republicans are pulling this shut-down stunt to assist the Democrats!

  • tim

    sue the federal govt for discrimination, until politicians and all federal workers, unions and all the religions like muslims who have been given a pass, all have to have obamacare!!!! That includes the dumbass in the whitehouse!!!!! If he gets a pass, everyone should get a pass!!!!!!!!

  • tim

    If others get a pass, so shopild everyone else. Sue the federal govt for discrimination!!!!

  • Blessings

    It is discrimination against us non government and union worker’s. Money and power can buy a way out of obamacare. We are nothing but the one’s paying the bills for their reckless speding.. When will our voice be heard?When will we matter? We reap the punishment of corrupt politicians… It starts at the top and [expletive deleted]runs down hill…