Categories: Fedweek

FEHB Proposal Changed

The subcommittee passed the FEHB benefits extension bill, although changing it to take into account cost concerns. At the hearing, an OPM official noted that the agency estimated in 2005 that expanding coverage to dependents up to age 25 as a simple extension of current coverage would add $200 million in costs—which would have to be shared by both the government and all enrollees. Union officials termed that estimate—which they said would translate into a 0.7 percentage point increase in premiums–too high given the youth of the persons who would be brought into the premium pool. However, in passing the bill, the panel amended it to create a separate extended coverage benefit that insurance companies would offer as a supplemental policy, but for which the enrollee would pay the entire cost—which OPM said would be in the neighborhood of $135 a month.

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