2013
It seems everyone wants an exemption from Obamacare as the unintended consequences caused by the incentives in the law become clear. Now it’s the big unions looking for relief, exemption, special treatment, etc.
At the core is the simple fact the people eligible for a marketplace plan could get a better deal than through their employer or their union trust fund. Getting the government to pay a large chunk of your premium through tax credits is a good deal for families with incomes up to 4 times the poverty level, which for a family of four is near $100,000. The same goes for employers who would be better paying the $2,000 penalty than providing coverage.
It’s the same old story; build the entitlement and they will come.
The program isn’t operational yet and people are figuring out how to get the “free” money. Just wait until people see the subsidies at work and start passing the word. This is especially true for average income families with several children. Use this subsidy calculator to see how generous the premium subsidy can be.
The health insurance exchanges face two critical tests in the next few years. First, if enrollment is not a good mix of health insurance risks (healthy people and heavy users of health care) the premiums charged by insurance companies will escalate rapidly. Second, if employers and workers decide that the exchanges and their tax subsides are a better deal, the lost revenue for the federal government will increase. Once again, government policy has set the stage for human nature and common sense to take advantage of the system … think encouraging sub-prime mortgages.
Union leaders note that under the law, workers whose family income is less than four times the poverty line will qualify for subsidies in the form of tax credits to obtain health insurance in the exchanges, with insurance sold by for-profit, nonprofit and cooperative companies. The union leaders say they want similar treatment — for unionized workers to qualify for those tax credits to help finance their Taft-Hartley insurance plans, which covers about 20 million workers and retirees.
“We just want to be treated like equals — we don’t want special treatment,” Mr. Taylor said. “An employer will say, ‘O.K., your plan costs about $10,000 a year. Let me get this straight. I only pay a $2,000 penalty if I drop you. That’s an $8,000 saving for me.’ That’s actually going to happen all over this country.”
via Unions’ Misgivings on Health Law Burst Into View – NYTimes.com.
Related articles
- Critics say Obamacare may tempt subsidy applicants to lie about benefits (kansascity.com)
- Paying premiums in a health insurance exchange; tax credits and income tax – Questions and Answers (quinnscommentary.com)
- Who is eligible for a subsidy for insurance in a health insurance exchange? (quinnscommentary.com)
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