Health Plan Checkup

One of the plusses to federal employment is solid, secure benefits.

But solid and secure doesn't mean static. The open season that began this week for the Federal Employees Health Benefits Program is a chief example. Good health coverage is guaranteed with a government job, but prices vary year to year and from plan to plan.

Earlier this fall, the Office of Personnel Management announced it was dipping into its reserves to keep next year's increase in premiums down to an average 2.3 percent. But that's only an average. Some premiums are increasing by double digits.

It behooves federal employees to check on their insurance plan and to make a switch if it would save them money. You'd be surprised how many people don't, said Walt Francis, author of Washington Consumer's Checkbook "Guide to Health Plans for Federal Employees."

"People aren't even doing the simplest kind of homework," Francis said. "And they should be because they have hundreds or thousands of dollars at stake."

Start by finding your home location on this map. Even though there are hundreds of overall FEHBP options, each location has only a handful. Clicking on your geographic area then will list the plan brochures for next year. They are all in the same format so they are easy to compare. One of the first sections in every brochure is titled "How we change for 2007."

Another resource for many employees is Francis' own guide. Many agencies buy access to the guide for their employees. (Click here to see if your agency does.)

Many federal employees are enrolled in the Blue Cross Blue Shield standard option, but Francis suggested looking at the basic option.

"There's a huge premium difference," Francis said. "In Blue Cross Standard, you can go out of network. People are paying an awful lot of money for the privilege to be able to go out of plan."

Francis recommended considering HMOs (health maintenance organizations) or high-deductible plans instead of the standard PPO (preferred provider organization), too.

In addition to changes in premiums, enrollees should look for changes to coverage. Francis pointed out that the two Mail Handlers Plans -- high and standard option -- no longer have a deductible for prescription drugs.

The biggest change this year is the much anticipated addition of dental and vision options.

"The vision plans really are only paying for a pair of contact lenses or glasses," Francis said. "And they're not paying for any medical costs. So if you need to see a doctor, your health insurance plan pays for that."

Dental plans offer more coverage. Still, employees should check into regular health insurance plans to see what kind of dental coverage they already offer before buying additional insurance.

Finally, the folks at OPM are constantly encouraging federal employees to sign up for flexible spending accounts during the open season, too. These accounts allow employees to put aside money, tax-free, to use for health costs ranging from dental care to toothbrushes.

You have until the end of the open season on Dec. 11 to finish your homework.