Three SEIU Locals--Including Chicago Chapter--Waived From Obamacare Requirement

Monday, January 24, 2011
By Fred Lucas


Rep. Barbara Lee (D-Calif.) rests her arm on an autographed copy of the health care law legislation. (AP Photo/Alex Brandon)

(CNSNews.com) – Three local chapters of the Service Employees International Union (SEIU), whose political action committee spent $27 million supporting Barack Obama in the 2008 presidential election, have received temporary waivers from a provision in the Obamacare law. http://query.nictusa.com/pdf/663/289342 ... 201663.pdf

The three SEIU chapters include the Local 25 in Obama’s hometown of Chicago.

The waivers allow health insurance plans to limit how much they will spend on a policy holder’s medical coverage for a given year. Under the new health care law, however, such annual limits are phased out by the year 2014. (Under HHS regulations, annual limits can be no less than $750,000 for 2011, no less than $1.25 million in 2012 and no less than $2 million in 2013.)

The SEIU, with more than 2 million members nationally, includes health care workers, janitors, security guards, and state and local government workers.

The three SEIU locals, covering a total of 36,064 enrollees, are covered by the federal waivers, according to the Department of Health and Human Services.

HHS gave a waiver to Local 25 SEIU in Chicago with 31,000 enrollees on Oct. 1, 2010; to Local 1199 SEIU Greater New York Benefit Fund with 4,544 enrollees on Oct. 10, 2010; and to the SEIU Local 1 Cleveland Welfare Fund with 520 enrollees on Nov. 15, 2010. http://www.hhs.gov/ociio/regulations/ap ... aiver.html

So far, the Obama administration has issued waivers to 222 entities, including businesses, unions and charitable organizations. Of that total, 45 were labor organizations.

A total of 1,507,418 enrollees are now included in the waivers. More than one-third -- 512,315 – of the enrollees affected were insured by union health plans.

SEIU Local 1199’s health plan put a $50,000 cap on medical expenses for its New Jersey nursing home workers, according to 1199 SEIU spokeswoman Leah Gonzalez. That’s $700,000 under the 2011 limit stipulated by HHS regulations.

In September, HHS announced it would grant waivers to employers to prevent some workers from losing their benefits if the insurer could not meet new health care law’s requirements on annual limits. The waivers are granted by HHS if the department determines “compliance with the interim final regulations would result in a significant decrease in access to benefits or a significant increase in premiums,â€