IRS Employees Union “Very Concerned” About Requirement That They Must Enroll In ObamaCare’s Health Insurance Exchanges

In July 2012 the U.S. Supreme Court ruled that the Affordable Care Act of 2010 (America’s healthcare reform law) was constitutional on the basis that the government can legally tax its citizens and that, for those who do not comply with the healthcare law, the penalty is a tax. The Internal Revenue Service (IRS), regulates our Country’s tax code and thus, in part, has a significant role in administrating the tax that those who do not comply, will pay. The IRS enforces Obamacare’s individual mandate and eligibility for the exchange subsidies, among other provisions.

It is interesting to learn that the union which represents over 150,000 Treasury employees including IRS workers, the National Treasury Employees Union, has announced that it is not in favor of H.R. 1780, a bill from Congressman Dave Camp of Michigan, which would move federal employees — including the president, vice president, members of Congress and other employees as defined by Title 5, Section 2105 of the U.S. Code — out of the Federal Employees Health Benefits Program, in which they now have their health insurance, and into health plans or insurance exchanges established under the Affordable Care Act. In April of this year Representative Camp introduced legislation to pull all federal employees on the exchanges in response to reports that members of Congress and their staffs were seeking an exemption from the provision in ObamaCare that requires them to enroll in the exchanges.

One of the issues related to members of Congress and their staff enrolling in the exchanges is a question over whether federal subsidies that are now paid can continue under the new law. Historically federal employees are offered subsidies (vouchers) which they can use to shop for insurance on the popular federal employees’ exchange known as the Federal Employee Health Benefits Program. Because ObamaCare was written so quickly there is a question as to whether the new law allows similar subsidies for federal employees on the ObamaCare exchanges.

It will, of course, be most interesting to see how the Union’s request shakes out. Many feel strongly that those who regulate the new law should be ‘subject to it’ and it bears watching what the White House decides in the weeks and months ahead. Will it treat those in our government differently than the rest of America or will it find a solution to both the law’s requirements and whether the vouchers can continue?

As with all else related to the new laws, the agents and underwriters here at Morris & Reynolds will do our very best to keep you informed about the new law and the provisions that impact you, your family and business.

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