Monday, September 13, 2010

No imminent change expected in the government contribution formula

House Majority Leader Steny Hoyer (D MD) spoke before the NARFE group today. According to the Federal Times, he told them not to expect Congress to increase the government contribution toward FEHB Program coverage or extend the premium conversion program to annuitants in the near term. The FEHBlog appreciates the Congressman's candor.

OPM should be releasing 2011 FEHB premium information soon. The Government contribution for federal employees and annuitants is set by statute at  72% of the enrollment weighted average premium capped at 75% of the selected plan's actual premium. 5 U.S.C. Sec. 8906.

The FEHBlog does not believe that Congress [from a political standpoint] can allow federal annuitants to pay their FEHB premiums with pre-tax dollars (the premium conversion program available to employees) without extending the same right to private sector retirees, and that would cost a lot of tax dollars.

1 comment:

Kay said...

Mr. Ermer,

I would appreciate a comment about the high premiums we former spouses pay for our FEHP. As we age, some of us, due to genetics, develop more health problems, require more office visits, and more prescriptions and/or medical equipment. I am very grateful to have the medical coverage, but the cost of the plan is budget breaking. My mathematician husband tells me that in spite of the high premium cost for standard benefits, we're still paying much less money out of pocket than we would if I did not have the former spouses coverage. As the new health care plan shakes out, it may be possible for me to drop the FEHP and be covered under his employer's health plan. But that will have to wait until we see where the health care plan is in the future. Thank you for your great blog. I stumbled upon it through a link on .....fibro fog! Drat! Don't remember where I saw it. You provide a great service. Thank you.