Health Care Bill Raises FEHB Issues

 

The Senate Finance Committee's version of a national health insurance reform bill contains language allowing FEHB-eligible persons to purchase coverage through the health insurance exchange arrangement envisioned in the bill instead of through FEHB. That was inserted by Democratic leaders in response to a Republican proposal to abolish the FEHB program after 2012 and move eligible persons into the exchanges, which would be created in several of the proposals circulating in Congress. That proposal could arise again, however, in the form of a later amendment. How premium and coverage terms would compare is unknown. Another proposal under consideration would open the FEHB to uninsured persons; it does not address whether they would be put in a separate premium and coverage pool or numerous administrative issues that would arise. The proposals are an outgrowth of arguments that Americans in general should get coverage similar to that enjoyed by members of Congress, whom FEHB covers. Yet another proposal would reduce the health care flexible spending account annual maximum from $5,000 to $2,500 for all workers, including federal employees, in order to raise tax revenues to help pay for the bill's cost.

Fuller Disclosure Coming on Potential for Increases

 

OPM also has responded to criticisms from enrollees and some members of Congress regarding the premium increases, which it says are needed in light of the enrollment and cost experience in the program since it began. Many enrollees have said they feel they were misled into believing that premiums would be level for life after enrollment. “Although materials in the FLTCIP 1.0 application packages and the Benefit Booklet have always stated when rates can be increased, in retrospect we realize we could have emphasized this critical information more prominently. We have applied these lessons learned in preparing the new material,” OPM said in a benefits letter to agencies.
 

 

No FLTCIP Open Season�Yet

 

OPM has said that the upcoming period in which current enrollees in the FLTCIP long-term care insurance program may change coverage is not a formal open season, even though the ending date of the election period, December 14, is the same as that for the upcoming open season in the FEHB, FEDVIP and FSA programs. OPM is calling it a “special decision period.” Mailings to enrollees under the future purchase option for inflation protection will start going out October 12 and mailings to those with automatic inflation protection will begin October 26. Enrollees will have the options of leaving their current coverage alone, subject to potential premium increases January 1 under the latter option, decreasing certain coverage in order to keep premiums the same if facing an increase, or electing new coverage under the revised FLTCIP terms that became effective October 1. However, the opportunity is not a true open season in the sense of the original election period in 2002, in which active employees could join with only the limited questions about their health that otherwise apply only to newly-hired workers. OPM said it expects to conduct a true open season late next year.