Feds flee costliest health plans
Skyrocketing health insurance premiums over the last five years have decisively changed the federal health care landscape.
Since 2007, nearly 300,000 employees and retirees have left the three most popular high-cost health plans. And over the last five years, nearly 500,000 have signed up for the lowest-cost versions of those same plans.
Insurance premium increases which in 2010 hit a five-year high of 7.4 percent on average are driving the shift.
"The reason for it is simple: People look for better deals, and oftentimes find them," said Walt Francis, who writes the annual Checkbook health care guide for federal employees. "That's how this program has been working for 50 years. It's greatly reduced costs from what they otherwise would be."
The Office of Personnel Management, which runs FEHBP, said in an e-mail that about 10 percent of active federal employees and 4 percent of retirees change health plans each year usually selecting a less expensive program. Those shifts help hold down premium costs by about 1 percent, OPM said. Feds in the Washington area, for example, can choose from 27 different plans, and OPM said the wide assortment of choices leads directly to movement among plans.
"One of the unique advantages of the FEHB is the large number of plans from which enrollees can choose," Jonathan Foley, OPM's director of planning and policy analysis, said in an Oct. 20 e-mail. "In a given open season, the net effect of enrollee movement is a reduction in total premium increase when compared to the increase that would have resulted from a static population."
Those population shifts likely helped hold the 2012 premium increase to 3.8 percent, the lowest since 2008. OPM said efforts to cut costs, increase the use of preventative medicine, and a recession-related decline in the use of health care also contributed to the smaller increase.
Employees and retirees will be able to choose their 2012 health plans during open season Nov. 14 through Dec. 12.
Geha Federal Health Insurance - News
Skyrocketing health insurance premiums over the last five years have decisively changed the federal health care landscape. Since 2007, nearly 300000 employees and retirees have left the three most
a trustee for Northwestern Mutual Life Insurance Co. Tim O'Donovan, retired chairman and CEO of Wolverine Worldwide Inc. and member of the board of directors at Wolverine, Spartan Stores, Kaydon Corporation, Cascade Engineering and Spectrum Health.
“Doing so can help these members with improved health, reduced health care costs and better quality of life. Preventive care services help GEHA reduce premium costs for all members.” Francis called these kinds of prevention and management tools
What do u think of GEHA government health insurance? | health ...
I have to drop my blue cross federal health insurance since they don't service east jefferson hospital any longer….the federal government will have open season soon and i was looking for opinions on GEHA( government employees health association) insurance…does anyone out there have this policy and are they satisfied with it.