Familiar Proposals Likely from White House

The Obama administration budget is expected to repeat several proposals it has raised for several years running regarding federal benefits: the addition of new plan designs in the FEHB program, allowing higher premium rates for enrollees who do not participate in certain wellness programs, using a centralized system for purchasing prescription drugs as a cost-saving measure, and coverage of domestic partners of either gender. Also proposed for several years have been reforms in the FECA injury compensation program, including imposing an up-front waiting period before any benefits begin and converting beneficiaries who hit retirement eligibility in the future to regular annuity benefits, which typically are less generous. All of those changes require revisions in law, which Congress has refused—although the administration itself has not pushed those ideas apart from including them in its budget plans. The budget proposal also likely will reflect ongoing initiatives regarding diversity, employee engagement, hiring and training that do not require congressional approval.