Some Ideas Have Faded Away

Several initiatives of both the White House and some in Congress have fallen by the wayside and there is no expectation of further action on them. For example, a budget outline passed by the House called for an increase in the employee contributions toward retirement, but a general consensus has emerged to do no more on that issue following two years of increases for employees hired after those increases were enacted. That plan also called for ending the student loan reimbursement authority but no moves have been made to carry it out. Similarly, the administration called for several reforms of the FEHB program, including making domestic partners eligible, allowing plans to charge variable premiums depending on an individual’s participation in wellness programs, and allowing new plan designs, but it has not pushed that plan and there has been no interest on Capitol Hill. The White House’s own proposals to revamp the injury compensation program have similarly made no progress. Also on the ropes is a postal reform bill that could tighten injury compensation policies government-wide as well as order changes in health coverage for postal employees and retirees (with unknown impacts on the rest of the FEHB population). USPS already has said it will again default on a required payment to pre-fund retiree health insurance that is due at the end of this month, drawing new attention to the agency’s financial problems and renewed calls for action by supporters of the reform effort. However, half of the Senate is on record as opposing a key element of that plan, to allow more closing of facilities.