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Labor Unions May Get Obamacare Tax Exemption Labor Unions May Get Obamacare Tax Exemption

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Health Care

Labor Unions May Get Obamacare Tax Exemption

Self-insured, self-administered plans could be exempt from reinsurance fee in 2015, 2016.

According to an insurance broker, many labor unions act as their own insurance company and claims processor, which would qualify them for the reinsurance fee exemption.(Chet Susslin)

photo of Clara Ritger
November 6, 2013

The Obama administration denied union requests for members to have access to subsidized health insurance, but new regulations look like they might be giving labor a nod.

A set of rules proposed by the administration would allow self-insured, self-administered plans relief from the Affordable Care Act's reinsurance fee in 2015 and 2016, Kaiser Health News reports.

In September the AFL-CIO proposed eliminating the reinsurance fee altogether, which will be applied in 2014 if the administration's exemption holds in the following two years. In 2014, the fee is $63 per plan, but decreases to $42 and $26 in subsequent years.

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