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FEHB Program Rates Released
The Office of Personnel Management just released the 2001 premiums for the Federal Employee Health Benefits Program, and once again the news is not so good for participants after OPM reported that the overall average increase will be 10.5 percent. According to an OPM press release, premiums for health insurance have been rising for the past several years nationwide and have outpaced inflation. As a result, premiums for FEHBP Health Maintenance Organizations will increase an average 8.5 percent, while the more traditional Fee-for-Service plans will see an average of 10.9 percent. The overall average increase will be 10.5 percent, according to the release. "Premiums are rising at unacceptable rates," OPM Director Janice Lachance said. "For 2001, we chose to raise premiums across the entire program rather than reduce benefits or take more money out of the pockets of those most in need of care. Keeping healthcare affordable, while maintaining a comprehensive benefits package, is a delicate balancing act." However, OPM officials did point out that starting next month all Executive Branch employees will have more affordable healthcare because of premium conversion, which premium OPM estimates will save employees an average of $434 per year. OPM stated that the largest contributor to the FEHBP premium increase is the rising cost of prescription drugs, which accounts for 40 percent of the total increase. OPM said other contributors include greater use of medical services, the expanded use of effective but expensive medical technology, and an older population. The new premiums go into effect in January 2001. FEHBP enrollees who have self-only coverage will pay about $3.50 more biweekly, while those with family coverage will pay $9 more biweekly. In 2001, the average biweekly premium for self-only coverage will be $36.52 for the enrollee and $83.74 for the agency. For family coverage, the average premium for the enrollee and agency will be $80.16 and $191.09, respectively. The 2000 biweekly rate for self-only coverage is $33 for the enrollee and $76.34 for the agency. For family coverage, the rate is $71.22 for the enrollee and $172.26 for the agency. -- Myke Reid, Assistant Director Legislative Department American Postal Workers Union, AFL-CIO e-mail: mreid@apwu.org |