ObamaCare causes union to drop 6,000 children's health insurance coverage.
Posted by LaborUnionReport (Profile)
Saturday, November 27th at 5:45PM EST 36 Comments
You remember how ObamaCare was all about making health care more affordable and protecting the most vulnerable, right?
And, surely you remember how much money and resources (i.e., members’ dues) the purple behemoth known as the Service Employees International Union (SEIU) put into the fight for ObamaCare—even going so far as (allegedly) beating Kenneth Gladney at a St. Louis town hall meeting.
Well, somehow we missed this last week:
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.
The fund is administered by 1199SEIU United Healthcare Workers East, an affiliate of the Service Employees International Union. Union officials said the state compelled the fund to start buying coverage from a third party, which increased premiums by 60%. State health officials denied forcing the union fund to make the switch, saying the fund had been struggling financially even before the switch to third-party coverage.
The fund informed its members late last month that their dependents will no longer be covered as of Jan. 1, 2011. Currently about 6,000 children are covered by the benefit fund, some until age 23.
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.
Of course, when it comes to the SEIU, it must be someone else’s fault.
Its never the fault of liberal unions.