Obama Administration Rule Exempts Big Labor from Obamacare Tax

In September, the Obama administration rejected union demands for subsidies offered under Obamacare, which are reserved for the uninsured and low-income workers. 

However, tax relief from Obamacare is in the horizon for Big Labor. No surprise, since President Obama is on the record saying, “I owe those unions. When their leaders call, I do my best to call them back right away.”

As reported by Kaiser Health News, “Buried in rules issued last week is the disclosure that the administration will propose exempting “certain self-insured, self-administered plans” from the law’s temporary reinsurance fee in 2015 and 2016.”

Union multi-employer health plans fit this description. Still, union bosses are not satisfied with the tax break and want an exemption from the 2014 reinsurance tax as well.

It is important to note that even without the new union tax break, multi-employer health plans are tax advantaged. These health plan (known as Taft-Hartley plans) benefits are provided tax-free to workers and beneficiaries. In addition, employer contributions to multi-employer benefit plans are tax deductible.

For more information on unions dodging the Obamacare reinsurance tax, see here and here.