Outrageous! Perks in High Places

Want a great deal on health care, pay and pension? Get a job on Capitol Hill.

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Photo-Illustration by Lou Beach
Congressional pensions come with annual cost-of-living adjustments. How many of us get that?
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An Appalling Disconnect

After 30 years of practicing medicine in Wisconsin as an allergy specialist, Steve Kagen got tired of writing prescriptions for patients who couldn't afford them. Determined to make health care more affordable, Kagen ran for Congress last fall on a “Declaration of Health” platform, and won. On his first day in Washington, he was invited to sign up for the generous health benefits available to every member of Congress. The benefits manager recommended he take the “Cadillac plan,” which features a $250 deductible and covers “everything,” Kagen says. Nor could he be rejected due to his age, preexisting medical conditions or any bad habits like smoking. After looking over the plan with amazement, Kagen refused. "Ma'am," he told the benefits manager, "I decline that offer until my constituents, and everyone across America, can have the same option."

In Kagen's view, there's an appalling disconnect between a Congressman's experience and the American reality. That's for sure. In fact, a lot of things in this country might change if members of Congress had to live more like regular Americans. Because it's not just the generous health plan that they get, courtesy of us taxpayers, but other benefits too—such as guaranteed pay raises and pensions.

No one is saying that Washington politicians don't deserve salaries and benefits. Serving in Congress is important work and can be demanding, and when you consider that most members need to maintain housing both in Washington and back in their home state, their $165,200 annual salary doesn't seem over the top. What's maddening is that Congress has insulated itself from some of the biggest financial pressures the rest of us face.

Take health care. Like all federal workers, members of Congress (and their dependents) are eligible for the Federal Employees Health Benefits Program—the deal Steve Kagen turned down. For less than $1,000 a year, they and their Senate colleagues can also drop by the office of the Capitol's physician, where a $2 million-per-year staff of nearly 20 doctors, nurses and technicians is at their service. For major operations, they've got access to top-notch government facilities like Bethesda Naval Medical Center, where Senate Minority Leader Mitch McConnell had his heart bypass surgery a few years ago.

Surprise, surprise: The health coverage available to Congress is better than Medicare. And according to a 2003 study by the nonpartisan Congressional Research Service, the prescription drug benefit of the most popular federal-employee health plan was worth 42 percent more than the standard Medicare drug plan Congress passed that year. To cap it off, unlike most Americans, members of Congress and their dependents often get to keep their health plans after they retire!

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