Fedweek

The administration also will seek legislation designed to better leverage the purchasing power of the Federal Employees Health Benefits population and create a dental insurance benefit under the program. Another proposal would allow employees to pay FEHB premiums out of pre-tax income, similar to the “cafeteria” type benefit plans used by many private employers and lower levels of government. That would save the average employee $434 per year on taxes, the administration claims. The budget also promises to provide mental health and substance abuse benefits on the same basis as other benefits beginning next January—an initiative previously under way—and to continue the general requirement that plans cover the major types of prescription contraceptives.