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Return to Article: Health insurance premiums to rise 11 percent

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  The statement made by OPM Director Kay Coles James regarding the increase in the Federal Employees Health Benefits Program being one of the lowest in the nation is nothing but "feel good medicine" for the thousands of us that once again have to "swallow this pill." I believe her statement, "Given the industry trends, our 11.1 percent increase is quite remarkable," is right on. However, she should have finished the statement with, "it is absurd for health benefits to continue to increase at this rate."

  A 30-plus percent increase in the last three years? Give me a break! My cost of living adjustments, just to refresh everyone's memory, have increased less than one half that amount in the same three-year period. Is it just me, or is there a distinct pattern here? At this rate, in another four or five years, I won't be able to afford health benefits.

  Anonymous Posted February 24, 2003 4:32 PM
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  These (increased medical premiums) approved by OPM seem to diminish any pay raise increase that federal workers receive at the beginning of the year. In the past three years these premiums have been double digit increases, yet the benefits coverage stays the same, or has reduced coverage.

  I do believe, that all federal workers have the option to choose the carrier that they prefer, but there are contingencies. If switching were an option, more and more employees would continue to shift on a regular basis. However, several carriers will not cover pre-existing conditions covered by the previous carrier. So we are stuck with the carrier we are enrolled with.

  Anonymous Posted February 24, 2003 4:31 PM
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  The real question is: why hasn't the "allowable amounts" paid out by insurance companies increased? Coverage with benefits plans such as for mail-handlers seem to have remained relatively constant over the past 5 years or they've added additional coverage for services that the majority of plan participant's don't use or need. A classic example is the dental coverage. Out of $1,500 for a periodontic procedure, the plan covered less than $250...yet rates increase. What's wrong with this picture?

  Anonymous Posted February 24, 2003 4:31 PM