We have written about Federal employees threatening to quit for the private sector if they were required to transfer from existing federal healthcare plans to Obamacare plans. Specifically, it just dawned on government employees that the switch would eliminate the government participation in payment of their premiums. It seems the very people who passed legislation affecting practically every person in the entire country do not want to be governed by those same rules.
In the wake of this dustup, and reportedly after President Obama personally intervened, the Federal Office of Personnel Management has agreed to issue a regulation next week wherein Federal employees would continue to receive Federal participation in their health care premiums notwithstanding being covered by an Obamacare Exchange product.
Our earlier articles pointed out the differing tax treatments to employees moving from employer provided health care to Obamacare Exchange Healthcare resulting in substantially increased taxes. We also pointed out that without a “fix” for Federal employees, the increased cost to Federal employees transferring from their existing plans to Obamacare is about $5,000.00 per taxpayer.
Now, assuming this regulation is issued, government employees will be relieved from the adverse effects of going onto Obamacare while employees in the private sector will experience the higher cost.
What is perhaps even more amazing is if the government was not prepared to issue an appropriate regulation, Congress was prepared to pass legislation to accomplish the same thing.
Horowitz Law Offices represents individuals and businesses for IRS Appeals, Tax Court, Audits and Collection. We also represent clients before the Illinois Department of Revenue (IDOR) for sales tax, use tax and motor fuel tax audits and collections as well as advocating for the various exemptions such as airplane, rolling stock, motor vehicle and heavy machinery.
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