Pandering to the Labor Unions

The health care reform bill stablishes a “temporary reinsurance program” to provide reimbursement to assist participating employment-based plans with the cost of providing health benefits to retirees and to eligible spouses, surviving spouses, and dependents of such retirees (p. 65).

Amounts paid shall be used to lower the costs borne directly by the participants and beneficiaries for health benefits in the form of premiums, co-payments, deductibles, co-insurance or other out-of-pocket costs and shall not be used to reduce the costs of an employer maintaining the participating employment-based plan (p. 69).

This reinsurance program will be funded “out of moneys in the Treasury not otherwise appropriated”, not to exceed $10 billion (p. 70). The Secretary of Health and Human Services has the authority to stop taking applications for participation in the program to ensure the expenditures do not exceed the funds available. This program would be established within the first 90 days of enactment.