Categories: Fedweek

Health Insurance Provision a New Twist

The DoD appropriations bill-but not the measure covering other agencies-also contains language that is new for this year, in reaction to criticisms that contractors are sometimes able to underbid the in-house side by shortchanging their employees on benefits. The language states that contractors would not be able to receive an advantage by not making employer-sponsored health insurance available to the people who would take over the work, or by offering a plan that requires the employer to contribute less to the premiums than the government does toward the Federal Employees Health Benefits program-about 72 percent, on average. The White House earlier issued statements opposing the restrictions on contracting out, but so far has not vetoed a bill because of such provisions.

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