OPM Proposes Extending Fed Health Benefits to Same Sex Partners
By Eric Katz
April 11, 2013 - GovExec.com
The Obama administration has proposed to expand the Federal Employees Health
Benefits Program to domestic partners -- including both opposite- and same-sex
couples -- as part of sweeping changes to the program.
The Office of Personnel Management announced its proposals at a
congressional hearing Thursday, saying the initiatives would improve efficiency
and help recruit a better workforce while saving $8.4 billion over ten
years.
Previously, same-sex domestic partners were
not covered under the FEHB Program. Jonathan Foley, OPMfs director of
planning and policy analysis, testified at the House Oversight and Government
Reform Committeefs Federal Workforce, U.S. Postal Service and the Census
Subcommittee that the expanded coverage would cost $600 million over 10
years.
Rep. Darrell Issa, R-Calif., the oversight committeefs chairman, met the
figure with skepticism.
gI hear you,h Issa said, gbut I find that as believable as estimates of how
much Obamacare would cost.h
In his prepared testimony, Foley said expanding coverage is a wise business
move for the federal government.
gThis proposal would align the FEHB Program with best practices in the
private sector as larger employers competing for talent are increasingly
offering domestic partner benefits,h Foley told the subcommittee.
Providing benefits to domestic partners would be coupled with a new gself
plus oneh option for federal employees, meaning they could provide coverage to
themselves and a partner or one child. Currently, feds must choose either self
or family enrollment. Overall, this would save $5.2 billion over 10 years, Foley
said.
Another major change to the benefits system would be to allow regional
options as part of the health benefits plan. This would allow OPM to consider
additional plan types but only offer contracts when it was in the best interest
of enrollees, according to Foley, who said the proposal would save $260 million
in the next 10 years.
Some lawmakers, including Del. Eleanor Holmes-Norton, D-D.C., expressed
concern this would lead to breaking up the large pool of enrollees covered in
FEHBP -- currently 8.2 million employees and retirees. Foley said OPM was not
proposing a regional pool, and that regional plans would still be part of the
larger pool.
OPM also suggested allowing the agency to negotiate with pharmacy benefit
managers directly, instead of relying on individual health plans to do so. Foley
said by leveraging the size of its enrollment pool, it could save $1.6 billion
over 10 years.
Finally, OPM proposed creating differentiated rates for enrollees based on
their health status and participation in health and wellness programs. Tobacco
users, for example, would be subject to higher premiums.
By Eric Katz
April 11, 2013
http://www.govexec.com/pay-benefits/2013/04/opm-proposes-extending-federal-health-benefits-same-sex-partners/62439/