(THE HILL) -- Labor unions are poised to score the delay of an ObamaCare tax in the bipartisan budget deal emerging in the Senate.
The bargain under negotiation would make small adjustments to the healthcare law, including delaying the law’s reinsurance fee for one year. The three-year tax is meant to generate revenue that will stabilize premiums on the individual market as sick patients enter the risk pool.
The tax applies to all group health plans, but unions argue it will raise their healthcare costs while providing them no benefit.
The reinsurance tax figured prominently in discussions at a recent AFL-CIO convention, where workers passed a resolution demanding changes to ObamaCare.
The White House recently denied labor’s top priority on ObamaCare, ruling that union health plans are not eligible for the new subsidies because they are already helped by the tax code.
Democrats could be pushing to delay the reinsurance fee for one year as an olive branch after that apparent slight, though it could also create trouble for insurers on the marketplaces.
The possible Senate deal would raise the nation’s debt ceiling until mid-February, immediately reopen the government and provide funding until Jan. 15. Read more via The Hill...