Obama Solves Health Care Problem for Lawmakers, Staff (Updated)
Updated: 10:41 p.m. | Just a day after President Barack Obama told Senate Democrats he had personally engaged in the issue of his signature health care law’s effect on lawmakers and their staff, it appears there’s a solution.
Word began circulating around Capitol Hill that the Office of Personnel Management would soon issue guidance to address the way the health care law’s exchanges affect members of Congress and those employed in their offices. Senate aides initially declined to discuss the matter, but Senate Majority Leader Harry Reid confirmed the existence of a deal to CQ Roll Call leaving the Capitol late Thursday — and a White House official confirmed details of the plan later Thursday evening.
Basically, OPM needed to determine that the federal government could help pay the cost of premiums on the exchanges for Congressional employees.
“I’m glad it’s done,” the Nevada Democrat said, directing a request for details to the White House.
A White House official confirmed to CQ Roll Call that OPM will issue the new regulation next week, and in turn lawmakers and aides will not be eligible for the law’s tax credits and subsidies to buy insurance.
During a meeting in the Capitol Wednesday with the Senate Democratic caucus, Obama said that he would personally step in to work on the issue before the health care law’s requirement that those on Capitol Hill get insurance through the exchanges. Obama’s comments were first reported by Politico and later confirmed by CQ Roll Call.
House Minority Leader Nancy Pelosi, D-Calif., released a statement Thursday night reiterating that staff and lawmakers must sign up for the exchanges.
“Members of Congress and their staffs must enroll in health marketplaces as the Affordable Care Act requires.
“As we continue our work to ensure the smooth implementation of this law and look forward to the start of enrollment on October 1st, we will continue our efforts this August to educate consumers on the law’s provisions and tout the critical benefits already in place for millions of Americans,” she said, with no mention of the deal that OPM is set to announce.
Steven T. Dennis contributed to this report.
By Michael Kitchen
LOS ANGELES (MarketWatch) -- The White House has approved a deal that will exempt members of Congress and their staff from some of the provisions of the Affordable Care Act, Politico reported late Thursday. Under the law, popularly referred to as Obamacare, lawmakers and their aides were required to source health insurance "created" by the law or offered through one of its exchanges, and without the subsidies they currently enjoy, the members of Congress would have faced thousands of dollars in additional premium payments each year, the report said. However, the Office of Personnel Management now plans to rule that the government can continue to make a contribution to the health-care premiums of the lawmakers and their staff, it said, citing unnamed congressional sources and a White House official.
Hill gets Obamacare fix
Lawmakers and staff can breathe easy — their health care tab is not going to soar next year.
The Office of Personnel Management, under heavy pressure from Capitol Hill, will issue a ruling that says the government can continue to make a contribution to the health care premiums of members of Congress and their aides, according to several Hill sources.
A White House official confirmed the deal and said the proposed regulations will be issued next week.
Just Wednesday, POLITICO reported that President Barack Obama told Democratic senators that he was personally involved in finding a solution.
The problem was rooted in the original text of the Affordable Care Act. Sen. Chuck Grassley (R-Iowa) inserted a provision which said members of Congress and their aides must be covered by plans “created” by the law or “offered through an exchange.” Until now, OPM had not said if the Federal Employee Health Benefits Program could contribute premium payments toward plans on the exchange. If payments stopped, lawmakers and aides would have faced thousands of dollars in additional premium payments each year. Under the old system, the government contributed nearly 75 percent of premium payments.
Obama’s involvement in solving this impasse was unusual, to say the least. But it came after serious griping from both sides of the aisle about the potential of a “brain drain.” The fear, as told by sources in both parties, was that aides would head for more lucrative jobs, spooked by the potential for spiking health premiums.
There was a certain sense of urgency, too, since enrollment in the exchanges was set to begin Oct. 1. There were discussions of a legislative fix — attaching language to a must-pass bill to fix the problem. But that would’ve been too difficult in today’s paralyzed Washington.
White House officials acknowledged that a fix was needed. But they knew that once they dealt with it through a regulation, some Republicans would use it against them – even though most of their party was privately obsessing over it.
House Minority Leader Nancy Pelosi (D-Calif.), in a statement Thursday night, touted the law’s benefits and Democrats’ efforts to educate consumers.
“Members of Congress and their staffs must enroll in health marketplaces as the Affordable Care Act requires,” she wrote. “As we continue our work to ensure the smooth implementation of this law and look forward to the start of enrollment on October 1st, we will continue our efforts this August to educate consumers on the law’s provisions and tout the critical benefits already in place for millions of Americans.”
Anger was already evident as well. Senate Minority Whip John Cornyn (R-Texas) tweeted a link to POLITICO’s story Thursday night, with the comment: “Outrageous exemption for Congress.”
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