The most pressing question is, who helps pay for the coverage of members and their staffs? Right now, their coverage is subsidized by the federal government (in its capacity as an employer). However, larger employers aren’t supposed to have access to the Obamacare exchanges until 2017. And the federal government is a pretty large employer.

If the federal government (acting as employer) cannot provide subsidies to members and their staffs, than how else are they going to get coverage? Under Obamacare, individuals making up to about $46,000 are eligible for at least some subsidy, but individuals who earn more are on their own. Good luck finding qualified people to work long hours for lower pay than they could receive in the private sector if they can’t even get health insurance. Also, under Obamacare, employers who don’t offer health insurance could face fines of $2,000 per employee if any of their employees obtain insurance through an exchange. Does that mean that the federal government (as an employer) would have to pay a mandate penalty for all those Congressional staffers who get health insurance through an exchange?

In lieu of providing benefits, could the federal government (in its role as an employer) simply offer a comparable salary boost or cash payout to Capitol Hill staffers to help them pay for insurance? As Cato’s Michael Cannon noted in a phone conversation, if such a payout is tax-free, it would amount to a sweetheart deal. If it isn’t, it would substantially reduce worker purchasing power.