My assignment editors (you) have asked me to write about the irony of the Cruz family relying on the Obamacare exchanges for health insurance now that the Senator’s wife has taken a leave of absence from the vampire squids at Goldman Sachs. Her family coverage through GS is now terminated until she goes back on the payroll.
The Cruz family has some choices for health insurance.
1) COBRA… For the next eighteen months, the Cruz family could COBRA the Goldman Sachs coverage. They would be responsible for the entire premium (roughly $40,000 per year) plus a 2% administrative fee. They would receive no government or employer subsidy for this coverage.
2) Run naked — as conservatives have been fond to incorrectly argue by misinterpreting studies, health insurance has no relationship to health status, so it is smart for the Cruz’s to not be covered as it would not impact their health, and if they need any services, they can trade chickens or bargain for good cancer treatment the day they get a diagnosis. Free Markets bitches.
3) Buy off-Exchange coverage. These would be Obamacare compliant policies without any government subsidy.
4) Join a healthcare sharing ministry with limited lifetime caps and significant pre-exisiting condition exclusions.
5) Get coverage from the other employed adult’s employer
a) The Cruz 2016 campaign will buy group health insurance policy for at least senior aides and field workers, so the Cruz family can get in on this.
b) Ted Cruz is eligible for the Federal Employee Health Benefit. For non-Congresscritters, FEHB is a private exchange with private insurers offering minimally qualified policies. The federal government will kick in a signifcant portion of the costs as a hidden employer subsidy. For Congresscritters, the FEHB outsources the plan selection and exchange functionality to the Washington DC SHOP exchange. The employer contribution follows the employed to the Washington DC exchange.
6) Get on-exchange coverage from a Texas insurer but since the Cruz family has access to affordable healthcare in 5B and family income is above 400% FPL for a family of four, they are not eligible for subsidies.
5b is the case where the Cruz family has to use Obamacare. The most likely scenario that I can see the Cruz family use to get coverage is 5A with an outside shot at joining a healthcare sharing ministry to cement their right wing bonafides.