Emerging Senate budget deal would be a victory for Big Labor

The proposed deal would include a one-year delay in a fee strongly opposed by unions that was to be assessed against health insurance plans starting in 2014, according to Politico.

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The relevant provision of President Obama’s health care law, the Transitional Reinsurance Program, was set up as a way of preventing any given insurer from getting stuck with a disproportionate number of very sick individuals with high medical expenses now that they’re forced to offer insurance to all comers.

The intention was for the federal government to collect $25 billion in fees between 2014 through 2017 to fund partial reimbursement of insurers for taking on added risk. The fee was supposed to be $63 per plan participant in 2014.

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