Retirement & Financial Planning Report

Auditors found insufficient controls over the review process, and that decisions were often untimely. Image: Mark Van Scyoc/Shutterstock.com

An inspector general audit has recommended steps to improve the OPM’s process for resolving disputes over denied claims under the Federal Employees Health Benefits program, saying it found OPM “lacked policies and procedures, sufficient training, and a quality assurance process.”

Under the program, when a claim is denied—for example on grounds that a procedure was not medically necessary—enrollees wishing to challenge that denial must first request that the carrier reconsider its decision but may then appeal to the OPM if the carrier again denies the claim or does not respond to the request.

In a review of such appeals over 2018-2020, it found “insufficient” controls over the review process, and that decisions were “frequently untimely”—with 21 of a sample of 81 continuing past the 90-day threshold in the pertinent regulations, and one as long as 467 days.

“Further, without sufficient support, OPM elected to open, close, and review disputed claims outside the processes defined in [the regulations] and the FEHB benefit brochures. Other reviews of disputed claims cases and final decisions were made inconsistently, in some cases conflicting with guidance from the Centers for Disease Control and Prevention and requirements in the Consumer Bill of Rights,” it said.

The IG also cited instances in which OPM “improperly disclosed” an enrollee’s personal information to another enrollee and did not respond timely to a Freedom of Information Act request filed on a disputed claim.

In the lengthy report, the IG made numerous recommendations; OPM management disagreed with many of them, with the IG in turn reasserting them.

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