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Unions Might Get Obamacare Subsidies After All

The labor movement appears likely to dodge a key tax under ObamaCare less than two months after the White House refused to make union plans eligible for subsidies.

The Obama administration indicated last week it will propose exempting certain self-insured, self-administered insurance plans from two of the healthcare law's three-year reinsurance fees.

The policies that would escape the fees include the multi-employer or "Taft Hartley" plans that are commonly held by union members.

The disclosure, buried in rules released by the Health and Human Services (HHS) Department, would give unions some of the relief they have sought from ObamaCare.

"We also intend to propose in future rulemaking to exempt self-insured, self-administered plans from the requirement to make reinsurance contributions in 2015 and 2016," HHS said.

Source: The Hill. Read full article. (link)

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  • dantheserene||

    I guess that means Obamacare is "fixed" then, right?

  • Cromulent||

    One law for unions, another law for the rest of us.

  • Michael Hihn||

    Define which are the "certain" plans which may be exempted.

    Self-administered and self-insured plans are hardly the province of unions. Many employers use self-insured plans (a smarter version of high-deductibles) simply because it makes financial sense. Likewise, multi-employer plans are not particularly unique to union workforces.

    It's been VERY widely reported that there's a a large increase in "private exchanges" --which are multi-employer. The surge is new, but multi-employer firms have used the concept for over a half-century. I created one myself in 1979, sponsoring group-rate health insurance for multiple small-businesses and ..... the self-employed who would otherwise be ineligible for group policies and rates.

    "Exchanges" are the word of the day. The original ones were called "association coverage"

    A self-insured plan is like a "high-deductible" policy for the entire group. The employer might pay cash for up to, say, a million dollars. Then buy coverage (called re-insurance) for eligible expenses over $1 million. Or, they might re-insure for specific costly procedures, like cancer treatment.

    One thing certain about the Obamacare issue. Nobody knows nothing about American healthcare coverage, which may be why the GOP never had a credible alternative to Obamacare ... and a downright stupid "plan" for Medicare. The financial tragedy of Medicare alone makes "doing nothing" not credible at all. It's like watching Monty Python. :-)

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