Unions for Obama

A “reinsurance tax” that was supposed to be imposed on labor unions was aimed at raising $25 billion over the next three years. It was earmarked as a pool of money that was being collected to offset the cost of insurance companies who will now be required to accept pre-existing conditions.

But Barack Obama has once again refused to bite the hand that feeds him and has rolled out the red carpet for labor unions.

S. A. Miller reports:

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The Obama administration sneaked in a rule that would let some labor unions off the hook for an ObamaCare tax.

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.

In September an unprecedented 40,000 union workers dropped the AFL-CIO because of the organization’s support for Obamacare. To say Obama’s relationship with labor is strained in 2013 is very much an understatement.

However, unions  spent over $400 million to help re-elect Obama in 2012 and that is only part of the story. The Wall Street Journal reported last year that unions spend roughly four times what FEC reports show because the requirements are only to report direct contributions and not union communications, organizing and lobbying activities.

I suppose if you are a union worker this news is good for you.

But for those of us who aren’t, we will be making up for this dirty political move with increased premiums due to the insurance industry losing a large portion of that $25 billion kick back.

The insurers will get their money one way or another and we will get the bill. But once again it is one group getting the benefit of political favoritism while the burden of the cost falls upon the rest of us.

The unions also get to hold on to a lot more money to help elect a democrat in 2016 and the vicious cycle continues.

Hillary must be stoked.