The Investor’s Business Daily reports on a new government report detailing a $5 billion slush fund that was included in ObamaCare, $2.7 billion of which has been handed out to the union bosses:

How do you funnel billions of dollars to your union pals at a time when the government is running record deficits? Easy, you just tuck the money into ObamaCare.

According to a new Government Accountability Office report, the federal government has so far handed out $2.7 billion out of a $5 billion program squirreled away in ObamaCare.

The Early Retiree Reinsurance Program is advertized as a way to “stabilize the availability of employer-sponsored coverage for early retirees,” according to a Health and Human Services memo.

The argument goes that companies are increasingly dropping retiree health benefits, leaving those who retire before becoming eligible for Medicare in a jam — either they face exorbitant rates for insurance or expose themselves to potentially catastrophic health costs.

The little-noticed ObamaCare program was supposed to encourage companies to continue offering this benefit until 2014 — when ObamaCare fully kicks in and will solve everything — by reimbursing companies for a chunk of their retiree health costs.

But lift the hood a little and this program looks more like a slush fund for Friends of Democrats.

Almost as soon as the program was announced, thousands of well-connected unions and government agencies rushed in to apply for the free money. As a result, the agency running the program had to stop accepting applications in May or risk running out of funds.

And just look at who made the cut.

According to figures obtained by IBD, 10 of the top 12 recipients are either unions or public employee groups. In fact, the biggest single recipient was the UAW Retiree Medical Benefits Trust, which alone grabbed more than 8% of all the funds handed out so far. Other union beneficiaries include the United Food and Commercial Workers, the United Mine Workers and the Teamsters.

The problem is that these groups are the least likely to drop their retiree health benefits, calling the lie to the Obama administration’s whole “stabilizing” excuse.In fact, over the past 10 years, the share of state and local governments offering retiree benefits increased — climbing to 83% from 80% in 2001, according to an annual Kaiser Family Foundation health benefits survey. (more…)