Saturday, November 9, 2013

Buried in Regulations Issued Last Week, Unions Granted Sweetheart Exemption on ObamaCare Taxes

This was reported in Kaiser Health News

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.

99% of the population will not understand this regulatory slight of hand but the tax at issue is the largest one in PPACA and giant unions are the entities most likely to "self fund and self administer" health plans.  Most private employers hire an outside TPA to administer the plan thereby making them subject to the tax.  

Political favors and kick backs continue to pervert and distort our nation's effort of "health reform."