The Inevitable Obamacare Relief Deal For Labor Unions Is On Its Way


The Administration of President Barack Obama is likely to grant exemptions to some labor unions that will open the way for Obamacare subsidies for members’ health plans, following ongoing complaints from union leadership that, in the early spotlight of the Obamacare rollout, the White House had temporarily ignored.

According to Kaiser Health News, the reversal of policy (or illegal executive revision of a Congressional Act, depending on your point of view) was buried in a slew of Obamacare rule tweaks issued by the Department of Health and Human Services last week.

From the Kaiser report:

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.

That’s a description that applies to many Taft-Hartley union plans acting as their own insurance company and claims processor, said Edward Fensholt, a senior vice president at Lockton Cos., a large insurance broker.

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.

Unions, a key Obama ally, have increasingly criticized the Affordable Care Act as threatening the generous medical plans held by many members.

Eliminating the reinsurance fee was one of several resolutions adopted at the AFL-CIO’s September convention, along with giving union plans access to ACA tax credits for lower-income members.

The Obama Administration had angered its ardent organized labor base days before the Oct. 1 rollout by maintaining that the law, as HHS planned to enforce it, would not allow union members to double dip by receiving Obamacare subsidies after their employers had absorbed part of the cost of premiums through group health care coverage.

Senator Ted Cruz (R-Texas) cautioned anyone who would listen at the time that the Administration was merely waiting for the initial media spotlight to shine away from the Obamacare story before giving unions — one of the vocal interest groups the Chicago Tribune described as “special pleaders” — most, if not all, of what they asked for.

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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  • wavesofgrain

    This is outrageous! Public unions should be abolished. I am tired of subsidizing whiny unions.

  • Muffin Man Mashinksy

    Isn’t it wonderful to have a prez who is soooooo flexible regarding laws passed by Congress & that he can change them exactly how & when he wants to, without bothering them???? Isn’t it great that the GOP is soooooooooo accommodating of him????

    May they all rot in HELL!!!!!

  • Tatiana Covington

    Very well… I hereby exempt myself. I invite and encourage everyone else to follow suit and exempt themselves while revising “laws” as they see fit.

  • rick0857

    Geez people. Stevie Wonder and Ray Charles saw this one coming…no seriously, I was in a restaurant a few years ago sitting at a table next to them while they talked about “Jim Jones” Obama doing this very thing for the unions!