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SAN FRANCISCO, CA

Editor's Report

October 2013

"NARFE - Your Voice in Congress - Working for YOU! "

Federal worker health program to remain largely stable: Premiums in the Federal Employees Health Benefits Program will rise an average of about 4 percent for 2014, the third straight year of increases in that range, the Office of Personnel Management announced Tuesday. “There are no significant benefit changes for 2014,” Jonathan Foley, OPM’s director of planning and policy analysis, said in a briefing with reporters. “Our negotiations [with insurance companies] were focused on keeping premiums as low as possible and providing choices for enrollees.”
The annual open season for federal employees and retirees to change coverage or for employees to initially enroll will run from Nov. 11 through Dec. 9. Premiums in the largest plan, the Blue Cross-Blue Shield standard option, will fall below that average, increasing by 2.2 percent for self-only coverage and 2.4 percent for self-and-family coverage. About three-fifths of enrollees are in that option or another Blue Cross offering.
About 8.2 million people are covered by FEHBP insurance, about half of them enrollees and the rest family members. The government pays an average of 70 percent of the total premium cost.
The overall average increase for 2014 will be 3.7 percent, but because of the way the cost-sharing formula works, the average enrollee share will increase by 4.4 percent while the government share will rise by 3.3 percent. The U.S. Postal Service pays more toward premiums for its employees because of bargaining provisions that do not apply in other agencies.
Officials said that several factors helped keep costs down, including continued emphasis on wellness programs and an emphasis on generic rather than brand-name prescription drugs. For 2014, plans must increase their benefits for health screenings and counseling for alcohol and tobacco use and must offer health risk assessments.
Another factor is competition: There will be 256 participating plans, 10 more than in 2013, although the large majority are regional plans. Health insurance companies “see this as a valuable market and they’re coming in and that helps keep prices down,” said John O’Brien, OPM director of health care and insurance.      Washington Post

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Herman Bracey, Editor
651 Cole St., Apt. 2, SF, CA 94117
ph:415-668-2337

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