FEHB Plan Options Standardized by OPM

A final rule was published by The Office of Personnel Management in the Federal Register in which, what it called an ”asymmetry in the insurance market for Federal employees and annuitants,” had been corrected.

The rule impacts the Federal Employee Health Benefits Program (FEHB) and was published and made effective on April 27, 2018.

What Changes are to be Expected?

OPM regulations currently have varying options when it comes to minimum standards for FEHB health plans. On one hand, some plans include two options along with a high deductible health plan. However, other plans could have three options of any kind or two options with a high deductible health plan, creating an asymmetry between the health benefits plans potential offerings.

The regulations are being changed by OPM so that all health benefit plans can potentially offer three options or two options and a high deductible health plan.

What Could This Mean for Participants of FEHB?

Federal employees that participate in FEHB could potentially see two new plan options as a result of this change, according to OPM. This regulatory change is expected by OPM to have a positive effect on the market dynamics in the FEHB program as it could increase the competition between health plans, potentially resulting in the offering of a larger variety of low-cost/high-quality options.

OPM’s goal is to make sure that the new options meet enrollee interests, and also to ensure that these enrollees have the necessary access to the information needed to understand the plan options that are available so that they can make the best decision.

If you have any questions regarding your FEHB coverage, then it would be wise to reach out to an advisor that can explain and clarify everything and help you make the best-educated decision possible.

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