The labor movement appears likely to dodge a key tax under ObamaCare less than two months after the White House refused to make union plans eligible for subsidies.
The Obama administration indicated last week it will propose exempting certain self-insured, self-administered insurance plans from two of the healthcare law’s three-year reinsurance fees.
The policies that would escape the fees include the multi-employer or “Taft Hartley” plans that are commonly held by union members.
The disclosure, buried in rules released by the Health and Human Services (HHS) Department, would give unions some of the relief they have sought from ObamaCare.
“We also intend to propose in future rulemaking to exempt self-insured, self-administered plans from the requirement to make reinsurance contributions in 2015 and 2016,” HHS said.
AFL-CIO President Richard Trumka told reporters on Wednesday that the labor federation is reviewing the proposal.
“We continue to work to address several problems that we have,” Trumka said. “Part of the solution that has been offered doesn’t just apply to Taft-Hartleys. It applies to self-administered funds, whether they are Taft-Hartley or not. We are still reviewing all of that and we continue to try to make positive changes to the act.”