FederalDaily - April 7, 2006

OPM Wants Expanded Health Benefits

Federal Employees Health Benefits Program (FEHBP) carriers should expand their plan options and make benefits, coverage and costs more “transparent,” the Office of Personnel Management (OPM) said on April 5. OPM issued its annual Call Letter—a blueprint of FEHBP priorities—to insurance carriers. The letter includes eight initiatives for 2007, including:

• offering more high-deductible health plans with health savings accounts;
• expanding use of health information technology, such as automated enrollee medical information; and
• promoting transparency by having carriers put provider cost and quality information online.

The FEHBP, with 278 plan options in 2006, covers approximately 8 million federal employees, federal retirees and their dependents. OPM officials kicked off the negotiation season with a Carrier Conference in Arlington, Va., April 6 - 7.

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Improper Payment Issues Lingering

A number of federal agencies still do not have the mechanisms in place to comply with the Improper Payments Information Act (IPIA), a Government Accountability Office (GAO) study found. Based on the 33 performance and accountability reports GAO reviewed for 2005, GAO found that not all agencies have taken the following steps:

• creating a process to review programs for improper payments;
• identifying all programs susceptible to improper payments; and
• providing annual estimates of total improper payments.

Of the 33 agencies, 18 provided improper payment totals that account for $38 billion over 57 different programs. GAO said that, because of a lack of available data, seven large agencies with combined budgets of $228 billion have not yet submitted improper payment information. To read the report, go to www.gao.gov/new.items/d06581t.pdf.

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USPS Expenses

Speaking on April 3 at the National Postal Forum in Orlando, Fla., Postmaster General John E. Potter described some of the U.S. Postal Service’s (USPS) costs:

• Fuel has risen more than $1 per gallon. That’s over a billion dollars a year for the gasoline USPS purchases directly.
• In terms of other fuel-related costs: fuel adjustment clauses on most of USPS’ transportation contracts, mileage paid to rural letter carriers, as well as electric and other utility bills have increased total energy-related costs to well over $2 billion annually since 2002.
• This year’s salaries and benefits are $4.5 billion more than they were four years ago—even with tens of thousands fewer employees.
• Bad addresses (undeliverable) cost USPS more than $1 billion a year in wasted productivity.

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Bill Proposes Better Mental Health Care for Troops

Sens. Hillary Clinton, D-N.Y., and Daniel Akaka, D-Hawaii, introduced the Healing the Invisible Wounds Act of 2006 on Wednesday to ensure properly funded and enhanced mental health services for military personnel, particularly those suffering from post-traumatic stress disorder (PTSD). Among other things, the bill provides the following:

• a required waiting period and notice before changing PTSD treatment;
• counseling for guard and reserve members and families to adjust to civilian life; and
• $180 million for readjustment counseling at veterans centers.

“Our Vet Centers provide crucial mental health counseling and outreach to our returning troops and their families,” Clinton said. “Our bill ensures that these centers have the resources and programs they need.”

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