Fedweek

In reaction to continued jumps in FEHB premiums, administration officials say they are working on a proposal to better harness the size of the enrollee pool in order to command better rates. This approach might include bypassing the existing process and having the government enter into direct contracts for certain services. However, OPM has been at work on that idea since last fall, and even if a proposal were to emerge soon, it’s questionable whether Congress could act on such an important overhaul of the federal health program in the little working time remaining this year. Any action would have no effect on next year’s premiums; negotiations on those rates already are well under way.