OPM begins to gear up for Open Season

OPM posted on its website today a benefits administration letter providing guidance to federal agencies on how to inform employees about the federal benefits open season , Open Season fast facts for employees and retirees, and how to inform employees about the programs themselves. Open Season runs from November 9 through December 14.

OPM has not posted on the web its press release on 2010 FEHBP premiums. I learned today from Govexec.com that total premiums (Government and employee share) increased 7.4% on average while the employee share increased 8.8% which was the number bandied about on Tuesday. This discrepancy is not surprising because the government contribution toward FEHBP coverage for civil servants and annuitants is defined by statute (5 U.S.C. § 8906) at 72% of the enrollment weighted average premium capped at 75% of the selected plan's actual premium. The most popular plans are above the 75% cap which causes the employee to assume a higher share of the premium increase. For the past several Congresses, bills have been introduced to increase the Government contribution and the cap, but no funding is available.

I found a great AHIP blog that tracks the fate of amendments proposed to be made to Chairman Max Baucus's healthcare reform plan, which is now under Senate Finance Committee consideration. The Chairman is shooting for a committee vote next week, and the Senate Majority Leader cut back on the Senate's Columbus Day recess in order to take up the health care reform bill. That's not a lot of time for the Majority Leader to meld the Senate Finance Committee and Senate Health Education Labor and Pensions Committee bill. Yesterday,

• By a vote of 19 to 3, the committee approved an amendment by Senators John Ensign (R-NV) and Tom Carper (D-DE) that would allow health insurance plans in the individual and group markets to vary insurance premiums, providing a reward of up to 30 percent of the employee-paid premium, based on an individual or an employee’s participation in wellness programs.

Assuming this measure (and the reform package) is enacted, it could provide a path for reducing the employee share of FEHBP contributions for at least some employees and annuitants. In this regard, it's worth noting that today HHS proposed a rule to implement the Genetic Information Non-Discrimination Act, which becomes applicable to the FEHB Program on January 1, 2010. I look forward to reading how this rule will impact wellness programs.

Finally the Centers for Medicare and Medicaid Services set the wheels in motion today for the upcoming Medicare Advantage Open Season.