PEN SEASON REPORT NARFE: ‘Any Increase Is a Decrease’
W
hile NARFE commended the Office of Personnel Management for its efforts “to keep the rise in health insurance premiums to a minimum in 2013, ” it also said that, in light of the continuing federal pay freeze and an anticipated cost-of-living adjustment of just over 1 percent,“any increase is a decrease.” In a statement September 20, NARFE President Joseph A. Beaudoin said: “While the 3.4 percent increase is reasonable and in line with the private sector, any increase means a decrease in take-home pay for federal employees, who will be facing an extension of the current two-year pay freeze at the same time the premium increases will go into effect. “In this economy, we should be working to put more money into the hands of all Americans, not less. Contrary to what many across the country might think, our nation’s retired and active federal workers, who pay 30 percent of their health care premiums, are already contributing their fair share. A premium increase, combined with a pay freeze, will be another hardship for struggling families.”
According to OPM, plans that leave the FEHBP are making business decisions based on enrollment, market penetration and overall margin/ profitability. Federal enrollees in the terminating plan need to select new coverage for 2013 during this Open Season. HMO enrollees should review their plan’s 2013 brochure to see if they still live or work in their plan’s service area.
INFORMATION Active Employees. Federal agencies will provide current employees with Open Season information and sources
for more information. Employees who do not receive Open Season information by November 12 should contact their personnel or administrative office. Annuitants and Survivor Annuitants. The federal retirement systems will provide Open Season information to all eligible annuitants, survivor annuitants and former spouse annuitants. For most retirees and survivors, OPM is their retirement system administrator. (OPM manages the Civil Service Retirement System [CSRS] and the Federal Employees Retirement System [FERS].) Annuitants, survivor annuitants and former spouse annuitants who do not
receive Open Season notices by November 12 should contact OPM. Your plan will not automatically send you a copy of its 2013 brochure; you must request one or download one from the OPM website. Annuitants and survivor annuitants paying FEHBP premiums directly to the National Finance Center will receive Open Season material from that agency. Federal Compensation. Those whose FEHBP enrollment is handled by the Department of Labor’s Office of Workers’ Compensation Programs will receive Open Season material from that agency. Effective Date of Changes. All Open Season changes for retirees and survivor annuitants are effective January 1, 2013, and premium changes are reflected in February 1, 2013, annuity payments. Open Season changes for federal employees are effective at the beginning of the first pay period after January 1, 2013. Annuitants who join or change HMOs must use the new HMO’s doctors, facilities, etc., beginning January 1. If verified enrollment is required, the change notice from OPM should suffice. Annuitants with follow-up questions should call 888-767-6738. Annuitants in the Washington, DC, area should call 202-606-0500.
Federal Benefits Service Department
Health Benefits Questions & Answers 1.Which is the best plan? There is no one good answer to that question. People have different health care needs and look for different things in a health benefits plan. A plan can be best for one person but not for another. Statistically, most annuitants have chosen Blue
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Cross/Blue Shield, Standard, followed by GEHA and Mail Handlers Benefit Plan.
2. How should I go about choosing a plan? Review your health care needs for the past year or two and consider the kinds of care you think you may
need during the next year. If you or a family member have been using a lot of hospital inpatient care, and you think you will continue to use that kind of care, choose a plan that has excellent hospital inpatient coverage. These include health maintenance orNOVEMBER 2012 | NARFE