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Labor union health plan tax exemption forthcoming

 

It looks like labor unions will get an exemption from some of the tax provisions of the Affordable Care Act, for at least a couple of years. Employers won’t be given the same treatment.

I guess it’s true that it helps to have friends in the White House.

More can be found in this report from Kaiser Health News:

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.

In September the White House said the law disallowed health-law tax credits for union members on top of their company insurance. Now the administration seems to be moving toward part — but not all — of what labor wants on the reinsurance fee.

While it intends to waive the fee for 2015 and 2016, unions also wanted it scrapped for 2014, when it will be greatest. Taft-Hartley plans are collectively bargained and run jointly by unions and employers to allow workers to move from job to job without losing coverage.

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