By executive fiat, hidden behind rules, Obama has just allowed HHS to pass a rule which grants $25 billion to unions as a reinsurance tax reduction fee. Everyone else now will have to pay more in their reinsurance fee. Is that fair?
These exemptions will continue. HHS has granted 1700 waivers, according to Sen. Thune, and half of them were to unions.
Sen. Thune, trying to protect the taxpayers from a lawless Administration
Have you noticed that the unions haven’t complained about Obamacare since their meeting with Obama in the Oval Office?
In a statement, Sen. Thune said:
“By publishing this proposed rule, the Obama administration moves closer to ensuring that its political allies will receive special treatment under the law,” said Thune. “Despite endorsing ObamaCare and working fervently to get it passed, unions are now experiencing the ugly reality of this law, and they want out. This exemption is crony capitalism at its worst. I will continue to push for passage of my Union Tax Fairness Act, which would ensure that unions are not treated as if they are above the law.”
“The ObamaCare reinsurance tax is scheduled to begin in 2014 and requires all self-insured plans to pay a tax for each person covered under a health plan. The tax was designed to provide funds to health care plans in the ObamaCare exchanges to help absorb the cost of care for people with pre-existing conditions.”
“On November 19, 2013, Thune introduced the Union Tax Fairness Act (S.1724) to explicitly prevent the White House from exempting unions from the reinsurance tax. His legislation currently has 12 co-sponsors.”
Click here for Sen. Thune’s comments
This is what happens in a tyrannical statist government where the elite few rule everyone else. Crony-ism is corruption, make no mistake about that. Obama is rewarding his base.
This is the article we posted on November 27th:
CMS Rule: Non-Union Group Plans Must Pay for Union Reinsurance Fees!
By Sara Noble
CMS is proposing to exempt union plans from the reinsurance fee and increase fees paid by non-union group plans to offset that exemption.
Barack Obama and Richard Trumka. Mr. Obama pays off his union friends with taxpayer funds.
Free Beacon: Senior members of committees with key oversight roles concerning the health care system, Sen. Lamar Alexander (R. Tenn.), Sen. Orin Hatch (R., Utah), and Sen. John Thune (R. S.D.), along with eighteen other Republican senators wrote that the regulation makes no justification for why union members should receive special treatment.
Wouldn’t you like to know why only 21 senators care about this blatant cronyism? Why should any of us pay for unions to get special treatment?
What other exemptions will they get down the road? Since the president met with the major union leaders, they have been very quiet.
Unions actively worked to pass the law and they are now actively promoting it, but they will not have to suffer the repercussions. They are very generous with other peoples’ money.
Is this even legal? Obama is changing the healthcare LAW yet again.
The reinsurance tax is scheduled to begin in 2014 and requires all self-insured plans to pay a tax for each person covered under a health plan. The reinsurance tax was meant to provide funds to health care plans in the Obamacare exchanges to defray the cost of care for people with pre-existing conditions.
U.S. Senator Pat Roberts supported a bill, introduced by U.S. Senators John Thune (R-S.D.), Lamar Alexander (R-Tenn.), Orrin Hatch (R-Utah) called the Union Tax Fairness Act (S. 1724), to prevent union health care plans from being exempted from the Obamacare reinsurance tax. It won’t make it through the Senate thanks to Harry Reid who won’t let it get to the floor.
h/t Jim Anderson