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Gang of 8 needs to fix massive Obamacare loophole with immigration bill

Senator Lindsey Graham and Senator Charles Schumer, members of the Gang of Eight have been working on immigration reform, including lifting the cap on H-1B visas. (AP file photo)

It often seems that when government tries to solve one problem, it creates 10 more.

A perfect example of this is today's "Gang of 8" senators working to fix our nation's broken immigration system -- but first, they have to work on fixing the last big law they passed: Obamacare.

Unbeknownst to many, the Obamacare law includes an unintended advantage for newly legalized immigrants. In short, the law incentivizes employers to hire immigrants over U.S. citizens as newly legalized citizens are ineligible for Obamacare subsidies. Employers who are required to pay a $3,000 fine for every full-time worker who subscribes to Obamacare's new insurance exchange subsidies now have a clear incentive to hire the immigrant.

Investor's Business Daily also points out that because immigrants granted provisional legal status under the Gang of 8 bill would be excluded from Obamacare subsidies for at least a decade, "the potential cost savings to an employer from hiring a legalized immigrant could continue for years."

“I think that is an issue, and I think that it needs to be addressed,” Sen. John McCain, R-Ariz., recently told Roll Call. According to McCain, the issue is likely to be fixed with a strategic amendment or two. "We are having lots of conversations,” he added. “I think it is something we can work out."

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