Thune Blasts Administration’s Proposed Rule to Exempt Unions From ObamaCare Reinsurance Tax

ObamaCare Reinsurance Tax White House moves one step closer to providing union ObamaCare bailout

WASHINGTON, D.C.—U.S. Senator John Thune (R-S.D.), Chairman of the Senate Republican Conference, tonight criticized the Obama administration’s decision to publish (see page 70) a proposed rule that would exempt union health care plans, known as Taft-Hartley plans, from the ObamaCare reinsurance tax, which would likely force other self-insured plans, including those of employers, charities, and faith-based organizations, to pay more to meet the amount of revenue required by law.

“By publishing this proposed rule, the Obama administration moves closer to ensuring that its political allies will receive special treatment under the law,” said Thune. “Despite endorsing ObamaCare and working fervently to get it passed, unions are now experiencing the ugly reality of this law, and they want out. This exemption is crony capitalism at its worst. I will continue to push for passage of my Union Tax Fairness Act, which would ensure that unions are not treated as if they are above the law.”

The ObamaCare reinsurance tax is scheduled to begin in 2014 and requires all self-insured plans to pay a tax for each person covered under a health plan. The tax was designed to provide funds to health care plans in the ObamaCare exchanges to help absorb the cost of care for people with pre-existing conditions.

On November 19, 2013, Thune introduced the Union Tax Fairness Act (S.1724) to explicitly prevent the White House from exempting unions from the reinsurance tax. His legislation currently has 12 co-sponsors.