Big Unions May Get Their Obamacare Exemption After All

By: Michael Lotfi
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The President has been under increased pressure from unions, which are seeking any possible exemption they can from his healthcare law. However, the President assured America that no one was getting an exemption– not even labor.

On Sept. 11, the last day of the AFL-CIO quadrennial convention was held in Los Angeles. Here, prominent labor leaders attacked provisions of the health care law, warning that if left intact they would devastate union-backed health plans that were decades in the making. Terry O’Sullivan, the International Union of North America General President, addressed the convention,“We’ll be damned if we’re going to lose our health care plan because of unintended consequences.”

Unions are in an uproar because the Patient Care Act does not allow them to receive premium tax credits under multiemployer union health plans and forces them to pay the reinsurance tax. In a resolution, labor also demanded that the ACA excise tax, reinsurance tax and other taxes to be nullified  for collectively bargained plans, union administered plans and other various plans that cover union-represented workers.

Robert Scardelletti, president of the Transportation Communications International Union/International Association of Machinists (TCU/AIM), estimates that  under current ACA rules, his union’s multiemployer health fund will have to pay $27 million in taxes. He’s not happy about it.

At the convention, labor said that if their demands weren’t met, then the Affordable Care Act should be repealed.

Three days after the convention the Obama administration told labor– no exemptions. It was not legally possible.


However, those exemption requests by labor are now coming to fruit. Last week the Obama administration released hundreds upon hundreds of pages worth of new rules and regulations for the healthcare law. Inside, a new loophole for unions was discovered. A disclosure exists that the administration will propose exempting “certain self-insured,  self-administered plans” from the laws reinsurance tax. Such a description applies to the majority of the Taft-Hartley union healthcare plans, which act as their own insurance company and claims processors.

Eliminating this specific fee was one of the key parts of the resolution adopted by labor at the convention. According to a report by Kaiser Health, labor most likely just got their exemption.

Piece by piece Obamacare  is being chipped away at via exemptions, which are all against the law. However, unions have proved a point that perhaps all opponents of Obamcare should take note of. When organized, Obamacare can be defeated.

To read more about how Obamacare is not a law, but a new 3-letter agency read my op-ed.

Follow Michael Lotfi On Twitter: @MichaelLotfi

 

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Michael Lotfi is a political analyst and strategist living in Nashville, Tennessee where he works as the executive director for the Tenth Amendment Center (TN). Lotfi also writes a column at The Washington Times called "American Millennial". Lotfi graduated in the top 5% of his class with honors from Belmont University, an award winning, private university located in Nashville, Tennessee.

  • Kimber_TLE

    However, the President assured America that no one was getting an exemption– not even labor.

    «sarcasm»Well, there ya go! If the president of the United States says something, you better damn-well believe it’s the truth!«/sarcasm»

    _____________________________________________________________________
    Obamacare: Forcing you to buy insurance you don’t want at a price you can’t afford from a website that doesn’t work since October 2013®

    • Tom223

      Is that sarcasm or just a direct quote from Obama’s press secretary?

  • Shorty Stuff

    Those damn unions helped get this illegal alien voted into the white house. They can take their own medicine now.

  • J fremun

    Big Unions….Cry Me a RIVER!

  • hyraxx

    Whatever happened to the “It’s the law of the land” argument the democrats pulled to justify keeping Obamacare as it was written during the shutdown?

  • Tom223

    It just gets better and better. This is the most dishonest, corrupt and law breaking presidency in history. What does it take for Obama supporters to wake up to what a disaster this man is for America? Obama could probably pull out an AK-47 in congress and shoot a Tea Party affiliated representative and not a damned thing would happen to him. Hell, he’d probably get re-elected.

  • Guest

    Sorry Unions, if you haven’t heard, Obamacare wasn’t made to increase profits margins for anybody. So quit whining.
    Side note: Since a valid law pertains to everybody, including the President and Congress, if the Unions (amongst others I’m sure) get an exemption does that mean that it’s no longer a law…?

  • golferstud

    Damn I am sick of this crap from Washington (they know what is good for the little serfs or our country). We need a new NUCLEAR law which says WHATEVER Congress passes as law for one citizen applies to ALL citizens. This new law would be the litmus test for EVERY elected official. If a candidate won’t swear to uphold this law in writing while in qualification period prior to running, they will be ruled ineligible to run for office. If you violate this law while in office, that is grounds for immediate impeachment from elected office with criminal prosecution to follow(read JAIL TIME). No exemptions…period. No exemptions for ANYBODY…period. If a law is needed, it applies to everybody…period…(Hear Barack Obama say that…just to use terms of speech by a famous liar). If you want “fair”…this is “fair”.

  • Freddy

    As for those of you rallying against the “big unions” that comprise about 1/10th of the workforce and keep industrialists from treating workers like Wal-Mart employees, I am sorry for how misguided, irrational, and unintelligent you are. As for law, well, there’s this little federal statute that prevents the government from intervening in ongoing contracts… You may have heard of it *cough* Constitution *cough*

    It’s also known as that law/thingy that actually doesn’t give you a right to own an assault rifle and actually does, give every single American citizen the right to vote.

    Also, the NLRA, by which unions abide, is for the protection of citizen employees, not illegal immigrants, even though it offers some rights there too

    Maybe you should educate yourselves before you go all ragestupid on the interwebs, hahaha.