Washington Post Columnist Examines Office Of Personnel Management Letter Outlining 2009 Agenda For Federal Employee Health Benefits Program

Main Category: Health Insurance / Medical Insurance
Also Included In: Public Health
Article Date: 21 Mar 2008 - 12:00 PST

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Washington Post "Federal Diary" columnist Stephen Barr on Thursday examined a March 11 "call letter" from the Office of Personnel Management to health insurers that outlines the agency's goals for 2009. The letter, which was released publicly on Wednesday, asks insurers to submit proposals for a pilot project to determine whether there are better ways to coordinate coverage between the Federal Employees Health Benefits Program and Medicare. Medicare serves as the first payer for most insurance claims submitted for federal retirees ages 65 and older. FEHBP plans usually waive hospital and medical deductibles, and coinsurance for retirees who pay Medicare Part B premiums.

According to Barr, OPM hopes the pilot project will provide better ideas for combining or coordinating coverage between the two programs "other than just waiving copayments." The letter recommends that insurers consider establishing accounts so that a portion of each retiree's FEHBP premium is used to pay Medicare premiums. Barr writes that the proposal "might lower overall premium costs for retirees but also might require insurance companies to accept more financial risk." The letter also states that OPM wants to complete contract negotiations with insurers over next year's health benefits package by mid-August.

At a two-day meeting of health insurers that participate in FEHBP, which began Wednesday, OPM Director Linda Springer called on insurers to increase coverage for adults who need hearing aids or have hearing problems. Springer at the meeting also said that while presidential candidates have talked about "opening up" FEHBP to all U.S. residents, OPM is not taking a position on the issue (Barr, Washington Post, 3/20).

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