Posts Tagged ‘glitch’
May 25th, 2013 at 4:21 pm
Unions Now Hit with ObamaCare’s Glitches and Gaps

Up to 20 million union members and their families will be ineligible for ObamaCare subsidies to help pay for their Cadillac-style health insurance plans, says CBS News.

Instead, members of unions for part-time and seasonal workers and their dependents will likely have to choose between higher premiums to stay on their plans – whose cost will rise because of the health law’s new coverage mandates – or cheaper plans that cover less – but are subsidized – on the state-based ObamaCare exchanges.

The reason for the choice is because ObamaCare only gives subsidies to people who are not covered by their employer. If union members opt to stay with the plans jointly administered by their union and their employer, then they, in effect, are choosing higher premiums.

Of course, opting out of the union’s negotiated health benefits makes union membership itself a much less attractive prospect, causing union leaders to fear that a mass exodus by members to qualify for ObamaCare subsidies will have the effect of shrinking union enrollment.

For its part, the Obama administration is refusing to carve out any exceptions for the affected unions, prompting at least one union official to say, “In the rush to achieve its passage, many of the act’s provisions were not fully conceived, resulting in unintended consequences that are inconsistent with the promise that those who were satisfied with their employer-sponsored coverage could keep it.”

Welcome to the club.