The GOP Should Put ObamaCare to Good Use

Tony LoSasso and Kosali Simon argue that to save money Washington should replace the Affordable Care Act insurance premium subsidy system with that of the Federal Employee Health Benefits Program (“

The Real Fix for ObamaCare,” op-ed, Nov. 18). Yet they neglect to mention that premiums for FEHB-based coverage are significantly higher than those for ObamaCare-based plans. In 2025 the average FEHB monthly premium was $897 for a self-only plan compared to $497 for the median benchmark ObamaCare Silver plan.

Why? Federal employees are incentivized to purchase the priciest plan available. The government directly subsidizes 72% of the FEHB premium, irrespective of the plan chosen. Employer-sponsored insurance premiums aren’t taxed. For the typical federal worker living in Washington, this translates to an additional subsidy of more than 11% on an after-tax basis. In other words, the government subsidizes more than 83% of the premium, either through direct spending or the tax code. If a federal worker chooses a plan that’s $100 cheaper, he retains less than $17 of the savings.