Side Effects: Report Reveals Another Flawed Obamacare Program

Kathryn Nix / April 06, 2011

Americans are well aware by now that Obamacare was sloppily written, a fact that has resulted in numerous unintended consequences that will adversely affect the nation. In light of a recent report from the House Committee on Energy and Commerce, the newly created Early Retiree Reinsurance Program (ERRP) can be added to the list of poorly thought-out provisions of the new law.

A temporary reinsurance program to run through 2014, the ERRP is an attempt to encourage companies to continue employer-sponsored coverage for early retirees between the ages of 55 and 65. Heritage analyst Brian Blase pointed out in a recent report that this program “appears to be mostly a bailout for public-sector and union health benefit programs for early retirees.” However, shifting the cost of benefits for government and other union employees onto federal taxpayers isn’t the only problem with the program. (more…)