Looks Like Unions Are Set For Obamacare Tax Break In Budget Deal


Don’t you love how things go in Washington, DC. They started out fighting over defunding Obamacare. Then it was delaying the individual mandate and scrapping the medical device tax. Now it’s about giving the unions a tax break.

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Labor unions are poised to score the delay of an ObamaCare tax in the bipartisan budget deal emerging in the Senate.

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The bargain under negotiation¬†would¬†make small adjustments to the healthcare law, including delaying the law’s reinsurance fee for one year. The three-year tax is meant to generate revenue that will stabilize premiums on the individual market as sick patients enter the risk pool.

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The tax applies to all group health plans, but unions argue it will raise their healthcare costs while providing them no benefit.

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The reinsurance tax figured prominently in discussions at a recent AFL-CIO convention, where workers passed a resolution demanding changes to ObamaCare. (Read More)

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The article goes on to note that the delay will cause trouble for health insurers. So it’s no wonder they’ll do it. It will just get them to their goal of a single payer system even quicker.

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