Crabby Appleton was a character in the Tom Terrific cartoons when the FEHBlog was a lad. (Crabby Appleton also was a band in the 1970s but I have the cartoon character in mind.) The FEHBlog loves that name and he always considers the day after the announcement of next year's FEHBP premiums (today) to be Crabby Appleton day.
Why? Take a look at today's Federal Diary headline -- "Health premiums rise is modest but unwelcome." The federal employee unions (which choose not to sponsor plans in the FEHBP) revel in dumping on OPM's press release even when the average increase, like this year, is peanuts (and below the projected 4% increase for large employers noted in the FEHBlog last week). The FEHBlog knows that this rate increase is nothing short of miraculous given the aging demographics of this group (half annuitants) and rising healthcare costs. It's a tribute to OPM and the carriers. It's easier to carp from the sidelines.
The FEHBlog notes two eye-popping article from Kaiser Health News and the New England Journal of Medicine. The Kaiser article knocks the FEHBP becauise the FEHBP's average cost increase over the last 10 years have been higher than Medicare's. What a red herring argument. Of course, Medicare which as the FEHBlog has illustrated time and time again relies on artificially low rates set by law comes in with lower increases than the FEHBP which has negotiated rates. Plus those rates are higher than they should be because Medicare shift costs onto the FEHBP and private sector plans.
The New England Journal of Medicine commentary suggests that the FEHBP could be "much more innovative" by imitating Medicare. Wow. The authors simply do not understand the FEHBP or the private market.
Turning to that market. the FEHBlog notes that Blue Cross and GEHA are two FEHB plans that already have announced their 2013 benefit changes on the heels of the OPM press release.
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