Labor Unions May Get Obamacare Tax Exemption

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

Union workers demonstrate outside the Hall of the States, where Wisconsin State Governor Scott Walker has an office, in Washington DC, on Wednesday, February 23, 2011.
©2010 Chet Susslin
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Clara Ritger
Nov. 6, 2013, 2:13 a.m.

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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