$5B Hollywood Handout Bankrupting Obamacare

NewsMax ^ | March 24, 2011 | Chris Gonsalves

[La Enchiladita]

A $5 billion handout to states, big corporations, and Hollywood unions to subsidize health insurance for early retirees is threatening to bankrupt a major part of the year-old healthcare reform law, according to staffers of the House Energy and Commerce Committee.

A small percentage of the organizations signed up for the plan has already drained more than $500 million from the program’s coffers.

Like many provisions in Obamacare, the “Early Retiree Reinsurance Program” has largely escaped public scrutiny and congressional oversight. The program provides subsidies to employers and unions to cover between $15,000 and $90,000 of the healthcare costs for early retirees.

The ERRP program was designed primarily to help early retirees over age 55, along with their spouses and dependents, who are not eligible for Medicare.

[La Enchiladita]

Nearly 5,500 organizations have been approved to participate in the program. Among the 253 participants that received more than $535 million in ERRP funding last year were Hollywood unions such as the Screen Actors’ Guild, and large corporations like Boeing, Northrop Grumman, and Sara Lee.

The lion’s share of ERRP reimbursements went to state governments, followed by non-profits, corporations, unions, and religious organizations, the report says.

[BwanaNdege]

Another example of the inadequacy of Central Planning (regardless of ideology). When it is done with faulty or malign motives is vastly more unable to escape the “law of Unintended Consequences”!

The superiority of widely distributed planning, research and development is demonstrated by taking a look at the iPhone or Android apps that are available. The best will prosper in the marketplace. Even the free ones will find a buyer for the services of their developers.

[excopconservative]

Redistribution of the wealth to the unions and non-profits. Small business and their employees pay for it.

[Tzimisce]

Well if you greedy, thieving, cheating taxpayers would just fork over your fair share, it’d be working fine.

/sarc

[SunkenCiv]

Thanks La Enchiladita.

A $5 billion handout to states, big corporations, and Hollywood unions to subsidize health insurance for early retirees... has already drained more than $500 million from the program's coffers... the "Early Retiree Reinsurance Program" has largely escaped public scrutiny and congressional oversight... provides subsidies to employers and unions to cover between $15,000 and $90,000 of the healthcare costs for early retirees.

[lowbridge]

bump

[mrreaganaut]

Is this one of those things that the Republicans can’t defund?

[mewzilla]

Bump for later.