Eight Federal Employee Health Benefits Program Health Plans Ask Congress to Study Blue Cross Plan

Eight insurance plans that participate in the Federal Employees Health Benefits Program are asking Congress to review Blue Cross and Blue Shield's plans to restructure its benefits package, saying that the changes would increase Blue Cross's market share and jeopardize the participation of competitors, the Washington Post reports. Blue Cross covers half of FEHBP's nine million federal employees, retirees and family members (Barr, Washington Post, 6/19). Blue Cross reportedly is leaning toward a plan that would require beneficiaries to use Blue Cross care providers but would cost less (Kaiser Daily Health Policy Report, 5/21). The coalition of eight employee organization plans -- the American Postal Workers Union Health Plan, the Foreign Service Benefit Plan, the Government Employees Hospital Association Health Plan, the Mail Handlers Benefit Plan, the National Association of Letter Carriers Health Benefit Plan, the Postmasters Benefit Plan, the Rural Carriers Benefit Plan and the Special Agents Mutual Benefit Association Health Benefits Plan --has sent letters to House and Senate committees disputing statements made by the Office of Personnel Management, which administers FEHBP, regarding Blue Cross's plan. According to OPM, employee options have not been limited by growing Blue Cross membership, and depending on where they live, federal employees have a choice of between seven and 31 different health plans. However, the coalition "contend[s]" that Blue Cross' new, lower-cost plan would "take more market share away from the remaining plans in the program." The coalition says that from 1996 to 2000, Blue Cross enrollment grew by 11.2% while enrollment in employee organization plans declined by 20.6%. During the same time period, HMO participation in FEHBP dropped more than 40%. Further, the coalition says that the number of employee organization plans participating in FEHBP has fallen from 23 to 12 in the last 12 years.

Just Market Trends?
Blue Cross spokesperson Pam Drellow said that "changes in the FEHBP reflect trends in the larger health care industry." She added that employee organization plans may have more difficulty attracting members because they often charge membership fees for members who are outside of the government employee categories that they were established to serve. Further, Drellow said that people often choose an insurance plan based on the size of the doctor and hospital networks (Washington Post, 5/19).