Wednesday, October 23, 2019
Hawai'i Free Press

Current Articles | Archives

Thursday, March 10, 2011
Obamacare Subsidizes Health Benefits for State and Local Government Retirees
By Heritage Foundation @ 1:13 PM :: 5468 Views :: Energy, Environment, National News, Ethics

From www.Heritage.org

It’s no secret that Obamacare is chock full of favors for big labor. One example is the new law’s excise tax on “Cadillac” insurance plans, which won’t apply to collectively bargained health plans when it goes into effect.

It doesn’t end there. Obamacare also created the Early Retirement Reinsurance Program, which subsidizes employer-sponsored health benefits for early retirees and their families. The program will cover 80 percent of health expenses between $15,000 and $90,000, and was intended to encourage employers to maintain coverage for the age group between 55 and 65, who can face difficulties purchasing insurance in the individual market absent an employer-sponsored plan. According to Secretary of Health and Human Services Kathleen Sebelius:

The Early Retiree Reinsurance Program is helping to control health care costs and protect coverage for early retirees and their families … This program is providing critical financial relief to help states, private employers and other organizations preserve access to affordable health coverage for millions of Americans.

But which Americans is it talking about? Workers with access to early retiree health benefits are most likely to be employed by state and local governments and unionized employers. The Kaiser Employee Health Benefits 2010 survey showed that 87 percent of state and local governments and 41 percent of large firms with union workers offer these benefits. Among those firms that do offer retiree health benefits, 93 percent extend them to early retirees.

In contrast, only 21 percent of large firms without union workers offer these benefits. Just 3 percent of small firms offer retiree health benefits.

So it’s clear who is benefiting from the ERRP. The program started reimbursing plans soon after the enactment of Obamacare, and in 2010 it paid out $535 million to plans sponsored by approximately 5,500 employers. The majority of spending was on state and local government employees, who represented 47 percent of ERRP sponsors. They received $298 million, or 56 percent of total spending on the program. Non-government union sponsors represented an additional 10 percent of participants.

Government workers already receive significantly more generous benefits than do non-union employees in the private sector. Government workers’ benefits are paid for by taxpayers, and as the country has witnessed in Wisconsin, scaling back those benefits to reflect what employees receive in the private sector is beyond difficult. Now Obamacare takes taxes paid by all Americans to subsidize the benefits of those who already earn above-market compensation. This is reverse redistribution of wealth.

As Heritage labor expert James Sherk puts it, “As President, Obama has made it clear that he only objected to particular special interests getting handouts. Obama happily gives some liberal special interests loopholes and exemptions from the laws that affect everyone else.”

---30---

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

808 State Update AM940

ABCDEFG Blog

ACA Signups Hawaii

ACCE

ALEC

Alliance Defending Freedom

Aloha Life Advocates

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

American Mothers of Hawaii

AMVETS-Hawaii

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Audit The Rail

Ballotpedia Hawaii

Better Hawaii 

Blaisdell Memorial Project

Broken Trust

CAFR Hawaii

Castaway Conservative

Children's Alliance Hawaii

Children's Rights Institute

Christian Homeschoolers of Hawaii

Citizens for Recall

Cliff Slater's Second Opinion

Coffee Break

Conservative Forum for Hawaii

CSIS Pacific Forum

DAR Hawaii

DeedySupport.com

DVids Hawaii

E Hana Kakou Kelii Akina

E Māua Ola i Moku o Keawe

Farmers For Choice Hawaii

FIRE

Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Get Off Your Butts!

God, Freedom, America

Grassroot Institute

Habele.org

Hawaii Aganst Assisted Suicide

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crime Victims' Rights

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defending Marriage

Hawaii Defense Foundation

Hawaii Families for Educational Choice

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Firearm Community

Hawaii Fishermen's Alliance

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii March for Life

Hawaii Meth Project

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Right to Life -- Big Island

Hawaii Right to Life -- Oahu

Hawaii Shield Law Coalition

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Heritage Foundation

HI Coalition Against Legalized Gambling

HIEC.Coop 

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Homeless Crisis

Honolulu Navy League

Honolulu Traffic

Horns of Jericho Blog

House Minority Blog

House Republican Caucus YouTube

HPACC

Hump Day Report

I Vote Hawaii

If Hawaii News

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

Judgepedia Hawaii

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes

KeyWiki

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

MentalIllnessPolicy.org

Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii

NARTH

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons 

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Salvage The Rail

Save the Plastic Bag

School Choice in Hawaii

SenatorFong.com

SIFE Remington

SIFE W. Oahu 

Sink the Jones Act

Smart About Marijuana--Hawaii

St Marianne Cope

State Budget Solutions Hawaii

State Policy Network

Statehood for Guam

Tax Foundation of Hawaii

The Harriet Tubman Agenda

The Long War Journal

The Real Hanabusa

Time Out Honolulu

Truth About Trade & Technology - Hawaii

UCC Truths

Union Members Know Your Rights

US Tax Foundation Hawaii Info

Valor in the Pacific

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT