Expert's View

I’m sure that most of us gave a sigh of relief when we learned that premiums for the 2007 Federal Employees Health Benefits Program would only increase by an average of 1.8 percent. According to OPM, that made it the smallest rate increase in more than a decade.

OPM further informed us that around 63 percent of FEHB enrollees wouldn’t even have a premium increase in 2007; and that another 15 percent would have an increase of less than 5 percent. Of particular note was the fact that premiums in the Blue Cross and Blue Shield Service Benefit Plan would decline by up to $1.29 per bi-weekly pay period, or stay the same, depending on the enrollment option. Since more than 56 percent of enrollments in the FEHB program are in Blue Cross and Blue Shield, that’s quite a load off a majority of federal minds.

On the other hand, these small increases ought not to be used as an excuse for sitting back and blowing off this open season. As always, you should be shopping not only for the best price but for the best coverage, the kind that fits you and your family.

A good place to start is by looking over plan brochures to see if they adequately cover the services you know you’ll need in 2007. Then look at the ones that family history suggest you may need, such as incidence of cancer or heart problems. And don’t neglect to check out the catastrophic limits that could protect you from severe financial strain if they came from left field.

Next, you want to make sure that the providers you now use – or would like to use – will be available in that plan. If they aren’t you need to know what the additional cost to you would be of going out of the plan network to use their services.

I’ve spent a lot of time talking to those who aren’t expecting much of a premium increase or none at all. Now I need to spend some time with those of you who may face a substantial increase. Don’t let that cause you to panic and jump blindly to another plan with lower premiums. You’ll need to do the same review of your options as those whose premiums are standing still. And you’ll have to go a step farther. You’ll have to weigh the costs and benefits with a closer eye. Even if your premiums go up, you may find that your plan is worth it.

The FEHB Open Season runs from November 13 through December 11. Use that time wisely. You’ll be glad that you did.