Obamacare Subsidizes Health Benefits for State and Local Government Retirees

Kathryn Nix / March 08, 2011

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: (more…)