A few days ago, Obama quietly slipped a change into the regulations on Obamacare, gives a back door pay-off to unions.
The unions were very unhappy because under Obamacare, the favorable programs that they had negotiated with employers were going to go away. They wanted the subsidies that the people in the exchanges could get.
So how did Obama address this anger?
J. Justin Wilson, from the Center For Union Facts, said now the unions will be given a tax break, exempting the unions from having to pay $600 million dollars in fees they would otherwise have to pay under the law. This would leave the fund that is intended to prevent Obamacare from going into a death spiral even more lacking in money, especially given the failure of young healthy people to sign up.
Other groups, insurance companies and self-insured employers that hire outside claims administrators would still have to pay the fee, which begins at $63 per insurance plan per member next year and is projected to raise $25 billion over three years.
Only the unions would really benefit from this change.
Wilson called out Obama calling this a “$600 million dollar pay-back”.