In 2014, Congress gets Obamacare. Here’s how they’ll pay for it.
By Ezra Klein, Updated: - The Washington Post
Starting in 2014, members of Congress and their staffs will have to get their
health insurance through Obamacare’s insurance marketplaces. But according to a
regulation that the Obama administration’s Office of Personnel Management plans
to announce on Friday and release next week, the federal government can continue
to contribute toward the cost of their health plans.
The regulation comes after months of worry on Capitol Hill. The Affordable
Care Act includes a provision, first proposed by Sen. Chuck Grassley
(R-Iowa), forcing members of Congress and their staffs to buy insurance through
Obamacare. But it didn’t provide a clear mechanism for them to do so.
The insurance marketplaces are built for individuals, not employers, and
there was concern that the federal government could not continue paying its
traditional share of congressional health plans. That would mean the entire cost
would fall to members of Congress and their staffs, many of whom would likely
flee the institution.
The Obama administration’s compromise is to permit the federal government to
contribute toward employee insurance on the exchanges, but to render those
employees ineligible for any tax credits or subsidies.
“Members of Congress and their staff must go into the exchange,” said an
administration official. “No ands, ifs, or buts. They will not be eligible in
any way for subsidies or tax credits. But they don’t lose their current employer
contribution.”
Congress is the only large employer that has to enter the exchanges — or is
even allowed to do so. Some on Capitol Hill have asked why the White House
staff doesn’t follow suit.
“We have no legal authority to do that,” the official said. “But we would
support legislation that would apply the same standard to the President and the
White House staff and the cabinet members. We believe the insurance
exchanges are a very good deal, a very good benefit, and we’re happy to be in
them.”