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                         November 16, 2001

FEHB open season begins

By Irene Brown
Editor

Thousands of federal workers will have a chance to choose new health benefits during this year’s Federal Health Benefits Open Season that began Monday and runs through Dec. 10.

For some, that choice is mandatory. The Office of Personnel Management announced in September that 28 HMOs were dropping out of the federal program, leaving more than 137,000 federal employees searching for new coverage.

OPM officials said the main reason for loss of carriers is profitability and low enrollment.

Along with fewer providers to choose from, federal employees will pay up to 20 percent more for health coverage.

According to OPM officials, the average increase for premiums will be 13.3 percent. Employees with self-only coverage will pay an average of 11.8 percent more and employees with family coverage will pay an average of 14.4 percent more.

The increase doesn’t sit well with union officials, who said a representative for federal worker’s interests should be in on the meetings with health care providers.

"The need for federal employees -- those who pay 30 percent of the bill for FEHBP -- to have a seat at the table at the annual ‘negotiations’ between OPM and the insurance companies has never been clearer or more acute," said Bobby Harnage, president of the American Federation of Government Employees.

OPM officials said the providers wanted even more of an increase.

"The initial proposals called for premiums to increase 15.9 percent on average and we managed to get it down to 13.3 percent," they explained.

There will be approximately 180 health plan options in the federal program this year, compared to 350 in 1998. West Point’s Civilian Personnel Advisory Center will hold its annual Benefits Fair Tuesday at Eisenhower Hall starting at 9a.m. Health care providers will be on hand to explain coverage and costs.

"This is a good time for civilians who must -- or are considering -- changing coverage to come and get informed about health insurance," said Michael Heller, USMA civilian personnel director.

For more information on the benefits fair call 938-3943.