GOP senators call on Obama to kill O-Care union 'carveout'

Republican senators are demanding the Obama administration rescind a “carveout” for unions in new ObamaCare regulations. 

Twenty-five GOP senators — including Minority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellGun proposal picks up GOP support Children’s health-care bill faces new obstacles Dems see Trump as potential ally on gun reform MORE (Ky.) and Sens. Lamar AlexanderAndrew (Lamar) Lamar AlexanderChildren’s health-care bill faces new obstacles Overnight Health Care: Schumer calls for tying ObamaCare fix to children's health insurance | Puerto Rico's water woes worsen | Dems plead for nursing home residents' right to sue Schumer calls for attaching ObamaCare fix to children's health insurance MORE (Tenn.), John ThuneJohn Randolph ThuneGun proposal picks up GOP support Overnight Regulation: Senate panel approves driverless car bill | House bill to change joint-employer rule advances | Treasury to withdraw proposed estate tax rule | Feds delaying Obama methane leak rule Dems see Trump as potential ally on gun reform MORE (S.D.) and Orrin HatchOrrin Grant HatchGOP eyes limits on investor tax break Children’s health-care bill faces new obstacles Overnight Finance: White House requests B for disaster relief | Ex-Equifax chief grilled over stock sales | House panel approves B for border wall | Tax plan puts swing-state Republicans in tough spot MORE (Utah) — signed a letter, sent Thursday, to express “deep disappointment” that the administration “has approved a final rule creating an unwarranted special carveout benefiting certain unions over other Americans.”

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In the letter to Office of Management and Budget Director Sylvia Mathews Burwell, the senators said she should pull back on the rule or they would attempt to block it with legislation.

“We demand that the rule be immediately rescinded or we will consider using options such as the Congressional Review Act (‘CRA’) to stop the rule from going into effect,” the Republicans wrote.

The rule in question was issued March 5 by the administration and dealt with the Affordable Care Act’s “reinsurance fee.” The fee taxes health plans from 2014 to 2016 to help stabilize the individual insurance market as sick patients come on board.

Under the revised regulations, certain self-insured plans, which are used by some unions, would be excluded from having to pay the fee.

Unions have bristled at the healthcare reform law, with the AFL-CIO passing a resolution at its convention last September criticizing ObamaCare.

Republicans have seen the new rules as a gift to labor, traditionally a political ally of President Obama, but many union officials have said the new rule will do nothing to help their members.

In addition, labor and business have united behind legislation to end the reinsurance fee for all health plans.