admin
07-02-2007, 01:43 PM
"In a recent survey, the Federal Employees Health Benefits Plan got high marks from workers and retirees. With more than 8 million participants, the benefits plan, like its health insurance counterparts in the private sector, has seen a steady growth in premiums over the last several years.
To explain this growth, the Government Accountability Office was asked to review the plan and OPM's management of it.
Some of GAO's findings included the recent slowing of premium costs to the withdrawal of reserves held by the Treasury, which offset planned increases by an estimated 2 percent in 2006 and 5 percent in 2007.
GAO also found that most plans with higher-than-average premium growth had a high number of older enrollees and early retirees as key drivers of premium growth."
GAO estimates that if OPM had applied for subsidies under Medicare's new prescription drug program it could have lowered premium growth by more than 2 percent.
Though not criticizing GAO's work, OPM credits lower premium increases to its efforts to negotiate with providers to promote market-based competition.
For more information:
http://fredericksburg.com/News/FLS/2007/072007/07012007/295865
To explain this growth, the Government Accountability Office was asked to review the plan and OPM's management of it.
Some of GAO's findings included the recent slowing of premium costs to the withdrawal of reserves held by the Treasury, which offset planned increases by an estimated 2 percent in 2006 and 5 percent in 2007.
GAO also found that most plans with higher-than-average premium growth had a high number of older enrollees and early retirees as key drivers of premium growth."
GAO estimates that if OPM had applied for subsidies under Medicare's new prescription drug program it could have lowered premium growth by more than 2 percent.
Though not criticizing GAO's work, OPM credits lower premium increases to its efforts to negotiate with providers to promote market-based competition.
For more information:
http://fredericksburg.com/News/FLS/2007/072007/07012007/295865