Choice Widening a Bit

The choices available in the FEHB in 2004 will widen somewhat, even though eight plans, with a total of about 17,000 enrollees, are dropping out. Seventeen plans will join the program, bringing the total to 205, eight health maintenance organizations will offer a second level of coverage and several HMOs are expanding their coverage areas. Most enrollees can choose among 11 national plans and varying numbers of HMOs. In addition, two carriers, Aetna and Humana, will begin offering a “consumer-driven” plan much like that introduced by the American Postal Workers Union for the 2003 plan year. Such programs feature an available pool of money, then a deductible, and then standard coverage-under APWU’s plan, a fee-for-service program, and under the new Aetna and Humana plans, HMOs. The Aetna option will be available to about 1.5 million employees and retirees and the Humana option to about 500,000, with some overlap between the two.