After publicly rejecting the unions’ request for an exemption, the Department of Health and Human Services last week quietly gave the unions a pass on what would have been a massive tax hit.
The tax, known as the reinsurance fee, requires self-insured organizations, such as unions and some large companies, to pay $63 for each covered member and an additional $63 for each additional family member on a health plan.
The fee was expected to raise $25 billion over three years, with the funds going to insurance companies to offset the cost of covering pre-existing conditions and other mandatory benefits.
Sparing unions that expense will go a long way toward repairing President Obama’s strained relationship with labor.
The unions, originally key supporters of the president’s health-insurance law, have increasingly bucked ObamaCare as it threatens their finances and the generous policies enjoyed by some of their members.
Buried in the new rules is a proposal to exempt “certain self-insured, self-administered plans” from the fee in 2015 and 2016.
That description applies to many union plans, according to experts.
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