Congress wins relief on Obamacare health plan subsidies – Yahoo! News
By David Lawder
WASHINGTON (Reuters) – Congress has partially wriggled free from the “Obamacare” health reforms that it passed and subjected itself to three years ago.
In a ruling issued on Wednesday, U.S. lawmakers and their staffs will continue to receive a federal contribution toward the health insurance that they must purchased through soon-to-open exchanges created by President Barack Obama’s signature healthcare law.
The decision by the Office of Personnel Management, with Obama’s blessing, will prevent the largely unintended loss of healthcare benefits for 535 members of the Senate and House of Representatives and thousands of Capitol Hill staff.
When Congress passed the health reform law known as “Obamacare” in 2010, an amendment required that lawmakers and their staff members purchase health insurance through the online exchanges that the law created. They would lose generous coverage under the Federal Employees Health Benefits Program.
The amendment’s author, Republican Senator Charles Grassley, argued that if Obamacare plans were good enough for the American public, they were good enough for Congress. Democrats, eager to pass the reforms, went along with it.
But it soon became apparent the provision contained no language that allowed federal contributions toward their health plans that cover about 75 percent of the premium costs.
This caused fears that staff would suddenly face sharply higher healthcare costs and leave federal service, causing a “brain drain” on Capitol Hill.
But Wednesday’s ruling from the OPM, the federal government’s human resources agency, means that Congress will not have to fully live with the reform language that it created – just as Republicans are trying frantically to delay or defund the program.
The OPM said the federal contributions will be allowed to continue for plans purchased on the new online health insurance exchanges, ensuring that Capitol Hill employees will effectively get the same health contributions as millions of other federal employees who are not being thrown onto the exchanges.
Ahh, it must be good to be part of the ruling class, granting yourself subsidies that cover 75% of your health care insurance premiums.