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Obama Gives Congress Illegal Obama-Care Waiver

An editorial from the Wall Street Journal:

Congress’s Obama-Care Exemption

August 5, 2013

To adapt H.L. Mencken, nobody ever went broke underestimating the cynicism and self-dealing of the American political class. Witness their ad-libbed decision, at the 11th hour and on the basis of no legal authority, to create a special exemption for themselves from the ObamaCare health coverage that everybody else is mandated to buy.

The Affordable Care Act requires Members of Congress and their staffs to participate in its insurance exchanges, in order to gain first-hand experience with what they’re about to impose on their constituents. Harry Truman enrolled as the first Medicare beneficiary in 1965, and why shouldn’t the Members live under the same laws they pass for the rest of the country?

That was the idea when Iowa Senator Chuck Grassley proposed the original good-enough-for-thee, good-enough-for-me amendment in 2009, and the Finance Committee unanimously adopted his rule. Declared Chairman Max Baucus, "I’m very gratified that you have so much confidence in our program that you’re going to be able to purchase the new program yourself and I’m confident too that the system will work very well." …

But the statute means that about 11,000 Members and Congressional staff will lose the generous coverage they now have as part of the Federal Employees Health Benefits Program (FEHBP). Instead they will get the lower-quality, low-choice "Medicaid Plus" of the exchanges. The Members—annual salary: $174,000—and their better paid aides also wouldn’t qualify for ObamaCare subsidies. That means they could be exposed to thousands of dollars a year in out-of-pocket insurance costs.

Democrats… begged the White House for help… President Obama told Democrats in a closed-door meeting last week that he would personally moonlight as HR manager and resolve the issue.

And now the White House is suspending the law to create a double standard… Congress will receive extra payments based on the FEHBP defined-contribution formula, which covers about 75% of the cost of the average insurance plan. For 2013, that’s about $4,900 for individuals and $10,000 for families.

How OPM will pull this off is worth watching. Is OPM simply going to cut checks, akin to "cashing out" fringe benefits and increasing wages? Or will OPM cover 75% of the cost of the ObamaCare plan the worker chooses—which could well be costlier than what the feds now contribute via current FEHBP plans? In any case the carve-out for Congress creates a two-tier exchange system, one for the great unwashed and another for the politically connected.

This latest White House night at the improv is also illegal. OPM has no authority to pay for insurance plans that lack FEHBP contracts, nor does the Affordable Care Act permit either exchange contributions or a unilateral bump in congressional pay in return for less overall compensation. Those things require appropriations bills passed by Congress and signed by the President.

But the White House rejected a legislative fix because Republicans might insist on other changes, and Mr. Obama feared that Democrats would go along because they’re looking out for number one. So the White House is once again rewriting the law unilaterally, much as it did by suspending ObamaCare’s employer mandate for a year. For this White House, the law it wrote is a mere suggestion.

The lesson for Americans is that Democrats who passed ObamaCare didn’t even understand what they were doing to themselves, much less to everyone else. But you can bet Democrats will never extend to ordinary Americans the same fixes that they are now claiming for themselves. The real class divide in President Obama’s America is between the political class and everyone else.

This outrageous ‘carve out’ didn’t get any attention in the news media over the weekend. It’s just being accepted as a done deal.

And even this editorial is fairly tame, considering. Though it does mention in passing that this deal is completely illegal. Just like his employer mandate delay is.

But what does Obama care about obeying the law?

This article was posted by Steve Gilbert on Monday, August 5th, 2013. Comments are currently closed.

3 Responses to “Obama Gives Congress Illegal Obama-Care Waiver”

  1. It’s good to be king.

    (until the peasants rise in righteous anger, then maybe the lessons of the Bastille will be remembered)

  2. Astravogel

    “All animals are equal, but some are more equal than others.” Animal Farm.

  3. Liberals Demise

    Don’t touch the teets on that golden sow, you lowly sloths.




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