Republican senators have rejected the idea of delaying a $63 per person transitional reinsurance fee under the Patient Protection and Affordable Care Act, according to a report from The Washington Post.
Senate Majority Leader Harry Reid (D-Nev.) proposed the delay in recent budget talks, but Republican senators objected on the grounds that the fee was a favor for labor unions, according to the report.
The temporary fee for people with health insurance will raise an estimated $25 billion over the next three years and will provide support for insurers facing the costs of covering people with medical problems that previously prevented them from getting insurance, according to the report.
Large employers — traditional Republican allies — and unions that operate multiemployer health plans will pay the fee directly. Both groups oppose the fee and argue they shouldn't have to pay it because they won't benefit from the fund, according to the report. Insurers participating in the state exchanges under the healthcare reform law will be the main beneficiaries of the revenues the fee generates.
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