FEHB Ideas in Budget Stalled Previously

The Obama administration recent budget contained several proposals on the FEHB program that would require approval of Congress. However, no hearings into those ideas have been scheduled; last year, disputes quickly arose over similar proposals, with the ideas being set aside after an initial hearing. Advocates of one idea, to allow regional preferred provider option plans, said it would bring a new choice and more competition into the program, but opponents said such plans could draw those who would put in the fewest claims, forcing premiums up in other plans. Also, objections arose to the proposal to allow domestic partners—presumably of either gender—to be covered as family members; part of that objection focused simply on the potential cost to the government of adding that coverage. Another plan, to centralize purchasing of prescription drugs, has been proposed for years but hasn’t overcome opposition from the companies that currently manage bulk prescription drug transactions.