Rail Chiefs Send Letter to Congress in Support of H.R. 3489 – Removing the ACA Funding by Taxing Railroad Health Care Plans

In a recent letter to all members of the U.S. House of Representatives from rail labor, supporting H.R. 3489, a bipartisan legislation, introduced by Representatives Pat Tiberi (R-OH) and Daniel Lipinski (D-IL) which would repeal the current funding mechanism for the Transitional Reinsurance Program authorized by the Patient Protection and Affordable Care Act (ACA).

Under current law, the Transitional Reinsurance program is expected to collect $25 billion in fees over a three-year period, beginning January 1, 2014, to the Department of Health and Human Services to supplement the program. The fee is set to collect from $63 in 2014 to estimated annual rates of $42 in 2015 and $26.50 in 2016, as the program is designed to raise less money each year.

The Railroad National Health & Welfare Plans cover over 400,000 lives, at an annual premium of over $2 billion. For our Plans, United Health Care estimates the Reinsurance fees will cost the railroad industry $27 million in 2014, $19 million in 2015 and $11 million in 2016.

Congress still has the opportunity to improve the law by modifying sections of the ACA. If Congress does not act soon, it will be too late to undo the damage. I urge your support for H.R.3489

Click here to read the full letter to the U.S. House of Representatives.