Another Try on Retiree Premium Conversion

Legislation (HR-994) to make federal retirees eligible for paying Federal Employees Health Benefits program premiums with pre-tax money has again been introduced in the House by Rep. Tom Davis, R-Va. Federal employees, but not retirees, have been eligible for the “premium conversion” arrangement since late 2000, saving the typical enrollee more than $400 a year on average. However, retirees are excluded because of provisions of the tax code, and some members of Congress have been trying since 2000 to change that provision.