One of the largest union-administered health-insurance funds in New York is dropping coverage for the children of more than 30,000 low-wage home attendants, union officials said. The union blamed financial problems it said were caused by the state’s health department and new national health-insurance requirements.
Once again, the Law of Unintended Consequences bites the Left right in the rump… these are the sorts of people that ObamaCare was supposed to help, and it’s having exactly the opposite effect!
The union fund faced a “dramatic shortfall” between what employers contributed to the fund and the premiums charged by its insurance provider, Fidelis Care, according to Mitra Behroozi, executive director of benefit and pension funds for 1199SEIU. The union fund pools contributions from several home-care agencies and then buys insurance from Fidelis.
“In addition, new federal health-care reform legislation requires plans with dependent coverage to expand that coverage up to age 26,” Behroozi wrote in a letter to members Oct. 22. “Our limited resources are already stretched as far as possible, and meeting this new requirement would be financially impossible.”
Behroozi estimated that the fund faced a $15 million shortfall in 2011 and more in the following years for the coverage of workers’ children.
There it is, laid out in plain English… the new requirement to cover “children” up to age 26 is just too costly.
Of course, the union knows who to ask for more money… the taxpayers!
“We hope the state of New York will do the right thing and provide the funding necessary for this most vulnerable population of direct caregivers,” the union said in a statement.
I gotta better idea. The state and Fedzilla (to borrow Ted Nugent’s term) should quit mandating who and what must be covered and let people shop for the coverage that fits them best, by either removing the tax break for employer funded medical insurance, or (preferably) extending the same tax breaks to individuals purchasing the coverage on their own… level the playing field, in other words.
For those who can’t afford coverage, let charities fill the gap, or, as a very last resort, let each state run its own high-risk pool, without micromanaging from DC.
But, since that reduces the power of politicians, they’ll never go for it. So, the children of some 30,000 hard-working people will lose their medical insurance. Thanks, Democrats.