Unions Get Big ObamaCare Christmas Present As Other Self-Insured Groups Get Scrooged - Forbes
Obama’s latest constitutional violation will exempt unions from a fee the law imposes upon all large group health plans.
That provision which appears in Section 1341 (b)(1)(A) establishes a reinsurance program to compensate insurers on exchanges in the individual market if they are hit with higher than expected costs to cover those with pre-existing conditions. This will come from insurers and self-insured employers who pay in proportion to the number of people they cover.
The target is to raise $25 billion during 2014, amounting to $63 per covered employee.
The union exemption would kick in for 2015 and 2016.
That provision which appears in Section 1341 (b)(1)(A) establishes a reinsurance program to compensate insurers on exchanges in the individual market if they are hit with higher than expected costs to cover those with pre-existing conditions. This will come from insurers and self-insured employers who pay in proportion to the number of people they cover.
The target is to raise $25 billion during 2014, amounting to $63 per covered employee.
The union exemption would kick in for 2015 and 2016.
As reported in a Wall Street Journal editorial, “The unions hate this reinsurance transfer because it takes from their members in the form of higher premiums and gives to people on the exchanges.”
The union exemption deal will require that insurers who aren’t fully reimbursed by fees along with non-exempted self-insured employers will have to pay more to make up the shortfall.
How will they make that up?
How else but by passing on higher costs to their customers?
The Department of Health and Human Services has confirmed that the fee for other non-exempt plans will be higher as a result.
How will they make that up?
How else but by passing on higher costs to their customers?
The Department of Health and Human Services has confirmed that the fee for other non-exempt plans will be higher as a result.
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