WASHINGTON--(BUSINESS WIRE)--The Senate Ethics Committee has cavalierly dismissed a June 25, 2015 complaint from the Council for Citizens Against Government Waste (CCAGW) and nine other signatories alleging that senators or Senate employees committed fraud and broke federal laws when they submitted applications to the Washington, D.C. Small Business Exchange, claiming status as a “small business.” As a result, rather than being subjected to the Obamacare healthcare exchange as individuals, senators and their staff were able to buy insurance and qualify for taxpayer-funded subsidies as employer and employees. The September 21, 2016 response from the committee stated that the allegations had been “carefully evaluated” and “that there had been no violation of Senate Rules.” The committee made clear that it would not reconsider its decision or take any further action.
The Affordable Care Act (ACA), better known as Obamacare, required members of Congress and their staff to enroll in individual plans through the new healthcare exchanges. As open enrollment approached in 2014, members and staff realized that by enrolling as individuals, they would no longer receive generous taxpayer-funded contributions to help pay their insurance premiums as they had for decades under the Federal Employees Health Benefits Program. They would instead only qualify for subsidies if their household income was less than 400 percent of the federal poverty level, just like tens of millions of other Americans who had to purchase insurance in the individual market.
To get around this problem, senators from both sides of the aisle worked with the White House and the Office of Personnel Management to convince the agency to issue special guidance permitting them and their staff to enroll in the Small Business Health Options Program (SHOP), which was also created under Obamacare. The applications that were submitted to the D.C. Small Business Exchange farcically claimed that the Senate and/or each Senate office is a small business with fewer than 50 employees. The employer was identified as “Twenty Congress,” and the statements were sworn to be true.
CCAGW President Tom Schatz said, “CCAGW joins taxpayers in expressing our outrage at the contempt the Senate Ethics Committee showed for the clearly false documents submitted to the D.C. Small Business Exchange. The Senate and Senate offices are plainly not small businesses. The falsified documents were a blatant attempt by senators to shield themselves from the harmful effects of Obamacare. This committee’s arbitrary and capricious decision is another sad example of why taxpayers have such contempt for their elected officials.”
The Council for Citizens Against Government Waste is the lobbying arm of Citizens Against Government Waste, the nation’s largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.