Health Insurance Reform Bill -- Impact on Federal Employees

11/12/2009

11/11/09: Over the weekend, in a vote of 220–215, the House of Representatives passed H.R. 3962, the comprehensive health insurance reform bill.  As NTEU had advocated, the legislation maintains the integrity of FEHBP.  Federal employees and retirees will be able to continue receiving coverage through the current system, using the plans they choose.  The House-passed bill rejects the use of the so-called excise tax on insurers as proposed by the Senate, which would tax insurance companies above certain thresholds. NTEU believes the tax would likely be passed on to federal enrollees in the form of higher copays, deductibles, and reduced benefits so we opposed that approach. We are also pleased to see a provision to allow parents to keep their young adult children on their plans up to age 27 if they do not have insurance, effective next year. While the overall bill is not perfect―for example we are disappointed in the cap of $2,500 for Flexible Spending Accounts―the House-passed measure adopts NTEU’s positions on the most critical issues related to FEHBP.

The Senate still needs to pass its health insurance reform bill. The Senate leadership is working on melding provisions from two reported bills―the Senate HELP and Finance committees’ bills. However, details of the leadership’s package will not be revealed until after the Congressional Budget Office provides a cost analysis of the bill.

 

NTEU will continue to provide updates on this comprehensive legislation as the measure moves through the legislative process.