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ObamaCare: The Chickens Come Home to Roost…

And Union Members Are Paying the Price.

By now, most Americans know how hard union bosses pushed, tugged, bullied and threatened, using tens of millions of their members’ money on advertising and lobbying, all to get health care reform passed.  Most Americans also remember (though many did not believe) the promises that health care reform would make health care “affordable for all.”

And no one can forget how the legislation was sold to Americans:

The Chairmen of the three Committees with jurisdiction over health policy in the U.S. House of Representatives introduced comprehensive health care reform legislation today that will reduce out-of-control costs, encourage competition among insurance plans to improve choices for patients, and expand access to quality, affordable health care for all Americans.

Well, on March 23rd (not quite six months ago), the Patient Protection and Affordable Care Act was signed into law. That same day, a jubilant Andy Stern even recorded this video for his SEIU members, congratulating them on how the SEIU “changed America forever.”



That was then

The Chickens Start to Come Home (aka the Law of Unintended Consequences)

Almost immediately after the passage of what is now called “ObamaCare,” like a pebble thrown into calm waters, waves began to develop. Karma.

The first sign of trouble began when a number of companies began taking hundreds of millions of dollars ($1 billion in AT&T’s case) in write downs due to the projected cost of ObamaCare, making Congress and the Administration furious. In fact, Rep. Henry Waxman (D-CA) was so furious that he ordered a show-trial hearing to be held and then he abruptly cancelled it.  It soon became clear why, as noted by the Daily Caller [emphasis added]:

Publicly, Waxman said the investigation showed the companies’ disclosures were properly filed. But a new report from committee Republicans reveals the documents Waxman obtained included embarrassing evidence that the health-care law could drive up insurance premiums and force employers to dump employees from their health plans.

“Turns out Obamacare means if you like your health plan you can lose it. The president didn’t have to actually strong-arm companies into dumping their employee health insurance because his bill carried financial incentives to virtually guarantee that result,” Energy and Commerce Committee ranking member Rep. Joe Barton, Texas Republican, said.

Most significantly, documents unearthed by the investigation highlight companies that are considering dumping employees from their current health-care plans in the face of new costs from the health-care law. President Obama repeatedly promised his health-care law would let Americans keep their current insurance if they’re happy with it.

The dumping begins

Over the past couple of weeks, months after Henry Waxman’s initial embarrassment, a big problem has begun to emerge for the Democrats who worked so hard to pass ObamaCare.  News has begun to break that companies are, in fact, beginning to dump their employees (or retirees) health care benefits.

  • WSJ3M Co. confirmed it would eventually stop offering its health-insurance plan to retirees, citing the federal health overhaul as a factor.
  • WSJMcDonald’s Corp. has warned federal regulators that it could drop its health insurance plan for nearly 30,000 hourly restaurant workers unless regulators waive a new requirement of the U.S. health overhaul.

And then, the strangest thing happened. ObamaCare’s purported benefits and savings evaporated and, due to the rules imposed by ObamaCare, costs have begun to soar.  This prompted the Department of Health and Human Services to grant waivers to those companies and groups:

Nearly a million workers won’t get a consumer protection in the U.S. health reform law meant to cap insurance costs because the government exempted their employers.

Thirty companies and organizations, including McDonald’s (MCD) and Jack in the Box (JACK), won’t be required to raise the minimum annual benefit included in low-cost health plans, which are often used to cover part-time or low-wage employees.

The Department of Health and Human Services, which provided a list of exemptions, said it granted waivers in late September so workers with such plans wouldn’t lose coverage from employers who might choose instead to drop health insurance altogether.

At least five of those “companies” weren’t actually companies, but unions—including the United Federation of Teachers, the Painters’ union (IUPAT), and the Transport Workers. According to the New York Post:

The United Federation of Teachers — one of President Obama’s key political backers — is the biggest beneficiary of a White House sweetheart deal that will exempt certain outfits from complying with new health-care rules, officials revealed yesterday.

“Big labor spent millions of dollars pushing ObamaCare, which they made sure was stuffed full of union giveaways,” said Patrick Semmens, spokesman for the National Right to Work Legal Defense Foundation, which represents businesses.

“So the fact that the largest waiver now belongs to New York teachers union bosses might be funny if the rest of America wasn’t stuck complying with the bill’s onerous mandates.”

Amazingly, the unions that had pushed so hard for ObamaCare are now asking to be exempted from its effects.

SEIU Members Begin to Pay the Price

Earlier this week, the American Spectator’s Jeffrey Lord wrote a piece detailing how ObamaCare is negatively impacting three hospitals in Northeastern Pennsylvania. Lord described how Cincinnati’s Catholic Healthcare Partners is putting up for sale three of its hospitals:

The three Catholic hospitals involved are: Mercy Hospital in Scranton; Mercy Special Care Hospital in Nanticoke, both in Kanjorski’s 11th District. And the Mercy Tyler Hospital in Tunkhannock, located in Carney’s adjacent 10th District.

The Cook announcement was big news in Northeastern Pennsylvania. The Sisters of Mercy had opened Mercy Hospital in Scranton, a major facility for the city, in 1917 — 93 years earlier.

According to Scranton’s WNEP:

Mercy Hospital in Scranton is up for sale.

Those who run the place and all other Mercy facilities in our area said Wednesday they are already in talks with organizations interested in buying.

Mercy Health Partners hopes to have a buyer by the end of the year.

Officials said there are numerous reasons for the sale. One big one is the heath care reform bill signed into law this year.

The potential sale includes Mercy Hospital in Scranton, Mercy Tyler Hospital in Tunkhannock and Mercy Special Care Hospital in Nanticoke.

[snip]

They said much of that required investment is the result of the health care reform bill passed in Washington.

The CEO said it means the need for more spending and less federal reimbursements.

Health care reform is absolutely playing a role. Was it the precipitating factor in this decision? No, but was it a factor in our planning over the next five years? Absolutely,” Cook added.

While the controversy about the hospitals’ sale still unfolds, there is one item of consequence that has been overlooked and that is the fact that all three hospitals are represented by the Service Employees International Union, 1199P.  The SEIU, of course, was one of the biggest—if not the biggest—proponent of ObamaCare.

In one of the biggest twists of irony is the fact that SEIU members, whose dues were used to lobby for the passage of ObamaCare, are now seeing their employer put their place of employment up for sale.

The UFCW and Its Coming Crisis

Elsewhere, in yet another example where union members may start paying the price of their leaders’ dalliances into nationalizing health care, the United Food & Commercial Workers is girding its members for a contract fight because of increased costs imposed by…ObamaCare.

According to this letter, UFCW Local 75 is girding its members for potential battle with their employer over the costs of ObamaCare.

[via the Virtuous Republic]

Here’s the money quote:

While health care reform will expand coverage for many working people, this new law comes at a price. Bearing this in mind, Local 75 included increases to co-premiums as part of our comprehensive proposal. The company, however, has included a number of changes to increase your out-of-pocket costs, as well as higher co-premiums. We recognize that compromise is a part of the bargaining process and are hopeful that both sides will make efforts to reach a fair contract.

Translation for UFCW members: You will be paying more for your health care, thanks to ObamaCare (or, you may wind up out on strike). [Isn't that the 'change' you voted for?]

While the word Karma springs to mind, the reality is, ObamaCare is not even six months old yet.  There will be many more stories like these in the months and years ahead.

Like all Americans who will be paying for this monstrosity, union members won’t be exempted forever from the effects of the legislation that they pushed for and we’re all paying for.  Like others, union members are already beginning to feel the pinch of ObamaCare.

Karma.

__________________

“I bring reason to your ears, and, in language as plain as ABC, hold up truth to your eyes.”  Thomas Paine, December 23, 1776

Cross-posted.

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COMMENTS

  • coldair

    All this, of course, was purposefully done, in order to advance the goal our Dear Leader really seeks: a single-payer (guess who that is?) health insurance system.

    Oops – sorry. I misspoke. That isn’t what Dear Leader really seeks – it’s a giant step along the way, but it’s not the end-game. The end-game is destruction of the evil capitalist system. The Health Care Law won’t do it all by itself. But together with massive debt from bail-outs, crushing financial-sector regulation (not to mention government seizure of mortgage investments by lenders), and a debilitating cap-and-trade – you’ve got a pretty good start on it (thanks, also, to far-sighted Dems who saddled us with Ponzi-scheme Social Security and its ilk).

    In a couple weeks, we may put a hitch in his git-along, but it will take much more than taking the House to stop this run-away freight. We had better be mindful of it, and actually do something.

  • mschuh

    If anyone thinks that was is happening now was unintended, they are sadly misinformed or a liberal.

    • saintgeorgegentile

      “New Rules Coming for Payments Out of Health Savings Accounts”

      http://www.foxnews.com/politics/2010/10/15/new-health-care-rules-require-doctors-note-pay-otc-drugs-fsas/

      “Robert Zirkelbach, a spokesman for America’s Health Insurance Plans, the industry lobby that voiced support for the overhaul but has been accused by some of the law’s proponents of trying to undermine it, said the law creates “unintended consequences.”

      “It creates unnecessary hassles for consumers and provides the wrong kind of incentives,” Zirkelbach said, adding that the changes could make it more difficult for consumers to get medicines they need at costs they can afford.

      “This change could have the unintended consequence of increasing health care costs,” he said. It might provide an incentive for consumers to go back on more expensive medications when over-the-counter medicine works just fine.”

  • JadedByPolitics

    lets KILL this monstrosity and have it burn on the trash heap of history!

  • nepanyrush

    I live in the Scranton area, and this is the first that I have heard that the three hospitals closing in our area (including Mercy, where my mother had worked) had their closing tied to Obamacare. The local paper, the Scranton Times, is VERY biased in favor of democrats and this story has not had any legs here. (I once read an AP release in one newspaper that, when I later read it in the Scranton Times, had the only three paragraphs favorable to Republicans actually cut out of the Scranton Times coverage.)

    If a tree falls in the forest and only a Scranton Times newsperson is covering the story, you will only hear about it if it can be spun as unfavorable to Republicans. After all, it was NE PA media that made up the story about someone shouting “Kill him” at a Palin rally. And without the Times, most people in this area will never understand Kanjorsky’s and Carney’s complicity in Mercy Hospital being lost.

  • spinoneone

    Repeal is a great idea, but even if we win the House this November and get the Senate to about 50-50 we still won’t have enough votes to override a Presidential veto. 0 will happily veto each and every attempt the Republicans make to cut, trim, and/or adjust 0care. The only real possibility of getting in a few blows for freedom will be to include modifications in “must have” appropriation bills and the like. Of course, that will have to make it through the Senate/House reconciliation process, too. I’m happy we will get the House back; I’m not too sanguine we will be able to make major progress unless and until we have a committed Republican President.

    • Rusty_S

      let the fool veto it, if he has the guts. I wouldn’t mind winning 49 states again.

    • http://www.laborunionreport.com LaborUnionReport

      The worse this becomes by next year, and if the GOP keeps it simple (as in, no excuses NOT to vote for repeal), they should raise it both the House and Senate. We know the Dems will vote against it, but at least it would expose the RINOs who have no testicular fortitude. Then, they can be primaried to oblivion.

  • JoeG

    The dems weren’t smart enough to make sure that the changes didn’t get relieved until after the election.

    If a company has their insurance year start January 1, then the open enrollment period is often in early November. The changes to the new plan are usually communicated to employees in late October. The provisions of obamacare that kick in for 2011 are being told to employees right now.

    In many cases people are seeing HUGE jumps in costs or HUGE reductions in coverage.

    • itrytobenice

      And you are exactly correct. They made many of the provisions effective right after elections, either in 2011 or, for the most unpalatable, in 2013. But their assumption was that we all wake up in a new world everyday, with no plans for tomorrow or memory of yesterday.

      The fact of the matter is, people who have to comply with their insane laws, begin many months in advance preparing for the effective dates and most companies are even now looking at the changes that will take effect in two years and making long term plans, as well as communicating those plans with stockholders/management/employees.

      They’ll not be able to hide from this monstrosity or blame its idiocy on our party.

      • http://www.lawyermommusings.blogspot.com thelawyermom

        perhaps he meant “reviled.”

  • izoneguy

    put them on railcars for “relocation”

    Don’t get on the ObamaCare railcar.

  • itrytobenice

    The bad news: This legislation is going to be a drag on our economy and our lives for years to come.

    The good news: It belongs to the Democrats completely.

    They will try to fix it, but they’re no smarter now than they were when they first passed it. The law of unintended consequences is still the only law they ever deal with that works every single time.

  • E Pluribus Unum

    nt

  • Patricia_C

    “For every action will come an equal yet opposite reaction”

    …. come to think of it. I think this applies to pretty much everything this administration does.

  • NeoKong

    We all knew.
    This law was designed to collapse private insurance and dump everyone into single payer govt. run healthcare.
    We even heard Obama say it in his own words.
    But the unions have such a “screw the rich , screw the company ” mentality that they voted to sink their own ship.

    • http://www.laborunionreport.com LaborUnionReport

      I knew this was out there, but couldn’t find it in time for this post.

      Will save this for Round Two, as the bloodletting is just beginning.

      Cheers, my friend! ;)