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Obama Administration Continues to Use Health Care Overhaul to Reward Friends

February 21, 2012

Today, the Department of Health and Human Services (HHS) announced nearly $640 million in cut-rate  loans awarded primarily to organized labor and “community organizers.”  The more than one-half billion dollars in loans were awarded to seven organizations in eight states and will reportedly be used to create health insurance plans under ObamaCare.  The biggest winner?  Freelancers Union which will haul in more than $340 million, which doesn’t even appear eligible under the law.  

Freelancers Union offers health insurance to union members and their dependents in New York, through Freelancers Insurance Company, which it owns.  It partners with UnitedHealthcare to offer health insurance to its union members elsewhere.  Interestingly, Section 1322(c)(2)(A) of ObamaCare expressly states that entities are ineligible for the loans HHS awarded today if “the organization or a related entity (or a predecessor of either) was a health insurance issuer on July 16, 2009.”   That’s strike one.

Further, Section 1322(c)(2)(B) of ObamaCare states that any organization receiving co-op funding cannot be “sponsored by a state or local government.”  However, Freelancers Union states that it “ has received grants and other support from New York City and State.”  That’s strike two.

Lastly, co-ops are required to be “not-for profit” entities, yet Freelancers Insurance Company sells itself as a “ for-profit insurance company owned wholly by Freelancers Union.”  That’s strike three.

It appears as though the Obama Administration will stop at nothing to reward their political friends, even if it means blatantly ignoring the law.