GAO Presents Data on Alternative FEHB Plans

Enrollment in “consumer-driven” plans in the Federal Employees Health Benefits program remains relatively low, the Government Accountability Office has said, although the experience so far indicates that such plans might be more attractive to relatively young and healthy enrollees. In reviewing the demographics of the first such plan, offered by the American Postal Workers Union starting in 2003, GAO found that the average age of enrollees in the plan was comparable to that of enrollees in other new plans, but lower than enrollees in national preferred provider option plans by about 15 years. And excluding enrollees over age 65, the proportion of enrollees who reported being in excellent or very good health was 73 percent, compared with 64 percent in other new plans and 58 percent in PPO plans, GAO said. The potential for so-called “adverse selection” is one concern regarding alternative plan designs such as consumer-driven plans and high-deductible plans, since if healthier enrollees flock to such plans, other plans would be left with higher claims rates and, thus, higher premiusm.