FEHBP Premium Conversion Bill Reintroduced

According to Govexec.com, Rep. Tom Davis (R. Va.) reintroduced a bill last week that would allow federal and military retirees the right to make their health plan contributions with pre-tax dollars (H.R. 1110). Currently, this right is restricted to active employees by the federal tax code. The bill was referred to the House Oversight and Government Reform Committee, which favors the bill, and the House Ways and Means Committee. Former House Ways and Means Chairman Bill Thomas had actively opposed this bill, but he is no longer in Congress and the Ways and Means Committee is now chaired by a Democrat, Charlie Rangel of NY. As this bill would produces a loss in tax revenues, the new “pay go” rule may present an obstacle, but this is a major legislative initiative for NARFE and the Military Coalition.