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Labor Unions Finally Read Obamacare Fine Print, Realize Costs Set To Spike, "Turn Sour" On Obama

Tyler Durden's picture




 

It is a well-known fact that nobody in Congress ever reads, or even skims, any law, and especially not the fine print, it passes until long after it has been enacted into law. It appears the same is just as true for the biggest pillar of support for the Obama administration: America's labor unions, whose liberal vote every election is instrumental to preserving the outflow side of America's welfare state. As it turns out, it was the same labor unions who enthusiastically supported the primary accomplishment of the Obama administration in the past 4 years, Obamacare, only to realize, long after it has become reality that, surprise, their healthcare plan costs are about to go up. And, as the WSJ colorfully summarizes, they are now "turning sour."

From WSJ:

Union leaders say many of the law's requirements will drive up the costs for their health-care plans and make unionized workers less competitive. Among other things, the law eliminates the caps on medical benefits and prescription drugs used as cost-containment measures in many health-care plans. It also allows children to stay on their parents' plans until they turn 26.

So what are the Unions' demands to offset what they only now realize will push their overall costs higher? What else: Moar!

To offset that, the nation's largest labor groups want their lower-paid members to be able to get federal insurance subsidies while remaining on their plans. In the law, these subsidies were designed only for low-income workers without employer coverage as a way to help them buy private insurance.

 

Top officers at the International Brotherhood of Teamsters, the AFL-CIO and other large labor groups plan to keep pressing the Obama administration to expand the federal subsidies to these jointly run plans, warning that unionized employers may otherwise drop coverage.

But, but, they can't - that's the whole point, or didn't they read that part too? Doesn't matter - to them it is now unfair, nay "unacceptable":

"We are going back to the administration to say that this is not acceptable," said Ken Hall, general secretary-treasurer for the Teamsters, which has 1.6 million members and dependents in health-care plans. Other unions involved in the push include the United Food and Commercial Workers International Union and Unite Here, which represents service and other workers.

So now that even the unions have understood that Obamacare is one big tax, maybe it is time to reevaluate its arrival at a time when the already strapped US consumer sees taxes rising, and has their savings extinguished.

Employers and consumers across the country will see big changes under the health law, which goes into full effect next year. Insurers will no longer be able to deny coverage to people with pre-existing conditions. Most individuals will be taxed if they don't carry insurance, and employers with at least 50 workers will face a fine if they don't provide it. About 30 million Americans are expected to gain insurance under the law.

 

John Wilhelm, chairman of Unite Here Health, the insurance plan for 260,000 union workers at places including hotels, casinos and airports, recalls standing next to Barack Obama at a rally in Nevada when he was a 2008 presidential candidate.

 

"I heard him say, 'If you like your health plan, you can keep it,' " Mr. Wilhelm recalled. Mr. Wilhelm said he expects the administration will craft a solution so that employer health-care plans won't be hurt. "If I'm wrong, and the president does not intend to keep his word, I would have severe second thoughts about the law."

Wait, no, you mean that in order to get your vote a career politician... lied? Say it isn't true.

So what is an administration that has pandered to every demand for welfare increases ever, to do?

For the Obama administration, holding firm against union demands for subsidies risks alienating a key ally. Giving unions a break, however, would not only increase the cost of the law but likely open the door to nonunion employers in a similar situation who would demand the same perk.

 

Obama administration officials declined to answer questions about whether union-employer plans could qualify for subsidies under the law. A spokesman for the Treasury Department, which will administer the subsidies as tax credits, said: "These matters are the subject of pending regulations. We will continue to work with employers, workers, consumers and businesses to implement the health-care law."

 

Under the health law, households earning up to 400% of the poverty level—$92,200 for a family of four last year—will be eligible for tax credits to offset the cost of private insurance. The less a household earns the more generous the subsidy.

And while the political wranging is about to get heated, Unions suddenly find themselves facing a very existential problem:

The Sheet Metal Workers International Association helped push for passage of the health law. Mr. Beall said he still believes everyone should have health insurance, but worries the law is undermining the union's ability to offer coverage.

 

"If we're not offering our members insurance and pension, why would you want to be union?" he asked.

 

The International Union of Operating Engineers Local 150 of Countryside, Ill., which represents construction workers and insures about 65,000 people, is also examining whether some lower-earning workers would eventually be better off leaving the union-sponsored plan and instead getting federally subsidized insurance.

 

"I've told my members, as this evolves, your health care will not look like it does today," said James Sweeney, president and business manager of the local. "I have to cut it back."

What is most disturbing is that even the unions are starting to understand that there is really no such thing as a free lunch:

Central Blacktop Co., a Hodgkins, Ill., road builder that employs members of operating engineers Local 150, provides health benefits by paying $13.45 per hour that each member works, said Joseph Benson, the company's chief financial officer. That averages nearly $19,000 a year per worker.

 

"Ultimately any increase in expense to the fund is going to come from us down the line," he said.

It will, but not today. Today, the agenda is to just get more.

 

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Thu, 01/31/2013 - 15:35 | 3203520 WillyGroper
WillyGroper's picture

Perhaps I should be more specific since I seem to have touched a nerve.

CWA.

So bullshit backatcha & 38 yrs of observation.

Thu, 01/31/2013 - 13:45 | 3203016 loveyajimbo
loveyajimbo's picture

Corrupt union scum meets corrupt NWO kenyan scum... only a matter of time until they went for each others throats... and Obongo does not need the unions now that hw is reelected... and he does not need the sheep anymore either.   Hopefully they will rise against him with tar and feathers... and... ???

Thu, 01/31/2013 - 13:53 | 3203054 Donlast
Donlast's picture

Some one said where do you go for treatment.  Go to Hong Kong.  Superb set-up.  Most of the Chinese doctors are trained in the West.  With a Westerner they care very much about doing a good job......Well, er .. they used to.  

Maybe its Mainland Chinese they care about more now, even if they don't like them. 

Just joking.  I am quite sure you will get well served in Hong Kong.  Perhaps Singapore the same, but I do not know about Singapore.  But in Hong Kong I had a life-saving op on the intestine. 

Thu, 01/31/2013 - 13:53 | 3203059 Totentänzerlied
Totentänzerlied's picture

Conveniently, they waited until just after re-electing King Obama. Union scum are useful idiots. Union leaders are run-of-the-mill socialist white collar criminals.

Thu, 01/31/2013 - 14:03 | 3203084 Fix It Again Timmy
Fix It Again Timmy's picture

The dearly departed Gore Vidal grew up in the lap of luxury. Years ago in an interview, he said that if you heard the way the wealthy talked among themselves about the common man, you would never vote for one of them. Some things never change.

Substitue "Union Leaders" for "wealthy"...

Thu, 01/31/2013 - 15:17 | 3203442 notadouche
notadouche's picture

Not hard to do because in fact the Union Leaders are wealthy so they naturally fit in that category.  They are the 1%.   

Fri, 02/01/2013 - 05:49 | 3205472 Clashfan
Clashfan's picture

Isn't GV the one responsible for the great scene with Raquel Welch? :)

Thu, 01/31/2013 - 14:09 | 3203104 MFLTucson
MFLTucson's picture

Fuck all of you in these labor unions, you voted for a man who you knew nothing about and now want to complain?  Get rid of the thugs running the Union.

Thu, 01/31/2013 - 14:11 | 3203114 Lost Wages
Lost Wages's picture

I was only fooled once. Unions get fooled a lot.

Thu, 01/31/2013 - 14:17 | 3203155 semperfi
semperfi's picture

fixed it:  Unions get a lot of fools.

Thu, 01/31/2013 - 14:15 | 3203126 Inthemix96
Inthemix96's picture

And still you stupid fuckers follow our lead.

You voted for it boys and girls, and now you get to live it.  Do you not read up and follow current affairs?  Barry the "O" will show you why following Britain will get you exactly where you are.

Do not give up your guns.  I repeat, dont fucking give up your guns.  You lot can still do something.  Us fucking imbeciles cannot.

You have been warned, the time is fucking real close.

Thu, 01/31/2013 - 14:21 | 3203165 Zymurguy
Zymurguy's picture

Obama to the Unions:

"You fucked up, you trusted us"

Thu, 01/31/2013 - 14:23 | 3203177 Zymurguy
Zymurguy's picture

A spokesman for the Treasury Department, which will administer the subsidies as tax credits, said: "These matters are the subject of pending regulations."

Read: "These matters are fluid and the administration will pick and choose who gets subsidies and exemptions."

we are no longer a nation of laws

Thu, 01/31/2013 - 14:32 | 3203241 reTARD
reTARD's picture

Karma bitchez! When statism turns upon its own "interest groups" and ends in cannibalization.

Thu, 01/31/2013 - 14:33 | 3203247 Kastorsky
Kastorsky's picture

made my day

Thu, 01/31/2013 - 15:23 | 3203466 lakecity55
lakecity55's picture

Comrades! Trade Unions are a Capitalist Poison!

Today, as I start my Third Term, Unions are now Outlawed!

Your labor belongs to the State!

 

Thu, 01/31/2013 - 14:44 | 3203291 orangegeek
orangegeek's picture

George Orwell - Animal Farm.

 

Everyone is equal.  It's just some are more equal than others.

 

Who gives a shit in the end.  We are on a road to hell and Ben and Barry should be thanked for that.

Thu, 01/31/2013 - 14:48 | 3203307 MFLTucson
MFLTucson's picture

http://dailycaller.com/2013/01/31/dhs-giving-new-immigrant-welcome-mater...

 

Read it and weep!  You fucking fools voted to have this dirtbag who never worked in his life take your money and give it to provide heathcare to people who have paid 0 into the sytem.  

Thu, 01/31/2013 - 18:48 | 3204250 strayaway
strayaway's picture

President Obama, as a purveyor of free bennies, is out there somewhere between Eva Peron and Hugo Chavez but what I don't understand is how we can afford to give expanded Obamacare benefits to both union members and illegal aliens. What's to become of Uncle Omar?

Thu, 01/31/2013 - 15:04 | 3203388 CitizenPete
CitizenPete's picture

Perfect - now the pigs smell the bacon cooking.

Thu, 01/31/2013 - 15:16 | 3203433 e_goldstein
e_goldstein's picture

Step 1: Learn to read you fucking fucktards :-/

Thu, 01/31/2013 - 15:20 | 3203452 lakecity55
lakecity55's picture

Commies screwing commies.

Hoax and Chains, Comrades!

Thu, 01/31/2013 - 17:18 | 3203980 lindaamick
lindaamick's picture

Predatory capitalism run wild has led to the following facts related to healthcare in the US. 

Insurance companies will do anything not to insure and not to pay claims to increase profits.

Big Pharma will do anything to sell the drugs they peddle whether they work or are toxic.  They will also go to any lengths to prevent said drugs from becoming generics.  They will also avoid the costs associated with new drug research as the eventual profits of said experimental drugs are unknown. 

Big Ag will feed us anything as long as it looks good.  There is no concern for nutritional value nor safety of the products.  

BigMedicine such as the Cancer Society, NIH etc has not seen overall improvement of cancer outcomes since 1929.  They simply changed the measurement to "surviving for 5 years cancer free" to get better PR/Marketing figures.  Therefore they will continue peddling the same Burn, Poison Cut processes in use for 50 years.  I am not sure insurance is worth what we pay for.

 

Thu, 01/31/2013 - 17:56 | 3204111 notadouche
notadouche's picture

After you said all of that you "are not sure insurance is worth what we pay for"?  Really.  After all those statements what gives you cause to be unsure of your stance?

Fri, 02/01/2013 - 02:46 | 3205354 snblitz
snblitz's picture

There is no predatory capitalism.  Only someone who can enforce monopoly pricing (maybe) or who can use coercion (the government) can engage in predatory anything.

The main reason capitalism cannot be predatory is because of the free market component.  You do not have to do business with any particular person or company (unless they represent the government, aka Obamacare).

No one is as yet forcing you to buy anything from Big Pharma, but that is coming, thanks to your government.

The medical insurance I want to buy is called Major Medical. It is illegal to sell it here in California.  It used to be legal.  And guess who made it the illegal?

The government really has only one legitimate responsibility in a free market economy and that is to make the citizens safe in life, limb and property.

What you are unhappy with is called regulatory capture.  The government of the United States at one time had as it primary responsibility the protection of the citizens lives, limbs, and property.

The businesses that the government was meant to keep from engaging in bad behavior have captured the government and now they and the government act in tandem against the citizens.

However, it is the **government** that wields the hammer of coercion and now use it on behalf of their partners in big business.

To fix things you must reform government. The rest will follow.

 

 

 

Fri, 02/01/2013 - 07:17 | 3205524 DYS
DYS's picture

What we have today is a far cry from capitalism.   Capitalism is being kept in an induced coma. 

Thu, 01/31/2013 - 18:45 | 3204238 SmittyinLA
SmittyinLA's picture

wait till they figure out illegal immigration is bad for their members too

Fri, 02/01/2013 - 00:36 | 3205174 kchrisc
kchrisc's picture

I love it!

I have been telling my friends and family since BEFORE the 2008 election that Obama was really a CIA controlled fascist. Now 4 plus years later they are getting it and it would seem the unions are too. And good and hard as well I may add. I had predicted that he would lose the support of the unions before the 2012 election. I guess I missed a little on that one.

I actually had friends and family that thought the GOP and/or Tea Party would repeal/stop Obamacare. And they are still shocked, shocked I tell you, that it did not happen. I actually earned the nick-name "good luck with that" because I said it so much. They don't call me that now. "Want a little tea to go with your crow?!"

The funniest comments that I see are the ones that call/label Obama as a socialist/communist. They obviously don't know what fascism or socialism/communism look like. Better Wikipedia that.

Name one thing done by Obama that is socialist or communist. Even the "Obama Phone" was in place BEFORE he took office. Obamacare is really a disguised tax to benefit the gov and several industries and big businesses.

Gun grab?! The WHOLE government wants out weapons, as they ultimately know what they will be used for--"...it is their duty..."

I'll concede that he closed Gitmo, stopped rendition, restored out lost rights. Oops, guess not!   hujel

 

Fri, 02/01/2013 - 02:25 | 3205334 snblitz
snblitz's picture

You cite as an authority wikipedia? ROFL

Please I agree with your sentiment but don't embarass our side.

Fri, 02/01/2013 - 02:45 | 3205357 toomanyfakecons...
toomanyfakeconservatives's picture

Off with their heads!

Fri, 02/01/2013 - 07:15 | 3205519 DYS
DYS's picture

I find it shocking that, somehow, people thought that we could pay for the heathcare of all people in the United States and somehow the costs would go down and the quality would go up.    The idea that the United States government would use it's leverage to negotiate lower prices is laughable.  In fact, the only people to come out on top will be the medical device and pharmaceutical corporations.   Doctor, patient, and taxpayer will all suffer.

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