OPM Budget Proposal and New Strategic Plan

Yesterday, the Trump Administration issued its Fiscal Year 2019 budget proposal.  The Washington Post this morning discusses the impact of the budget on federal employees and annuitants. The budget includes a proposed statutory change to the government contribution for FEHBP coverage which is detailed in this budget document at page 182:

This proposal would revise the government contribution rate to base it on a plan’s score from the Federal Employees Health Benefits (FEHB) Program Plan Performance Assessment. Currently all FEHB carriers participate in the assessment, which includes 19 measures of health outcomes, quality, and efficiency. Under this proposal, the Government contribution would range between 65-75 percent depending on a plan’s performance.

As it stands the government contribution ranges from approximately 65% – 75% of the selected plan’s premium due to the impact of the statutory cap on the government contribution. The current government contribution formula is 72% of the enrollment weighted average capped at 75% of the selected plan’s premium. The FEHBlog is not suggesting that this is nothing burger but it also is not going to attract new plans. Too much emphasis on metrics for the FEHBlog’s taste.

OPM also released its new strategic plan. The plan is much shorter than it’s immediate predecessor. The predecessor plan had a chapter on the FEHBP. The new plan has a section (1.4) that fits in under one page. Brevity is a virtue.

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