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FederalDaily - September 17, 2007

GAO: Army Needs Better Coordination in AFRC Construction
Average FEHB Premium Increases 2%, Blue Cross Jumps 8.5%
Federal Benefits Open Season Starts Nov. 12

GAO: Army Needs Better Coordination in AFRC Construction

As the Army begins to replace nearly 400 Armed Forces Reserve Centers (AFRCs), it needs to do a better job of coordinating its efforts with Army National Guard units, said a Government Accountability Office (GAO) report. GAO offered the recommendation after examining Army progress in implementing the Base Realignment and Closure (BRAC) reserve component. The Army plans to construct 125 new AFRCs and close 387 existing reserve component facilities, said the report, released Sept. 13. DoD expects the new AFRCs to increase recruiting and retention and create greater efficiencies. However, GAO said the Army needs to do a better job of bringing together the various key stakeholders involved in the construction of these facilities, including states’ Army National Guard. For example, some Guard officials told GAO that the new centers may not fully meet the personnel and equipment requirements of certain types of reserve units. “It is unclear whether the Army will be able to successfully address potential implementation challenges affecting the completion of 125 AFRC projects because it does not have a plan that routinely brings together the various stakeholders,” the report said. To see more, go to: www.gao.gov/cgi-bin/getrpt?GAO-07-1040

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Average FEHB Premium Increases 2%, Blue Cross Jumps 8.5%

Enrollees in the Federal Employees Health Benefits Program (FEHBP) will see an average increase of 2.1 percent in their 2008 health insurance premiums, the Office of Personnel Management (OPM) announced. However, the Blue Cross/Blue Shield plan—which enrolls about 60 percent of the 8 million federal employees, retirees and their family members—will see an 8.5 percent average increase in premiums for 2008, the National Treasury Employees Union (NTEU) pointed out. NTEU President Colleen Kelley was sharply critical of the hike. “With more than 4 million people in the Blue Cross plan, this is a rate hike of staggering impact,” she said Sept. 13. Kelley also said OPM has refused to take advantage of the substantial prescription drug subsidy to which it is entitled under Medicare. Using the Medicare subsidy could help in holding down premium increases, she said. OPM also announced that premiums for its popular dental insurance program, instituted only a year ago, will rise sharply by 6.1 percent. Unlike the FEHBP itself, under which the cost is shared by the government and employees, federal workers pay the entire premium for their dental care plan on a pre-tax basis, Kelley said. To see more, go to: www.nteu.org

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Federal Benefits Open Season Starts Nov. 12

The Office of Personnel Management (OPM) on Sept. 13 announced that the Federal Employees Health Benefits Open Season has been renamed the Federal Benefits Open Season and will run governmentwide from Nov. 12 through Dec. 10. The name change was meant to reflect the broadened scope of benefits available under the Federal Employees Health Benefits Program (FEHBP)—including the Federal Employees Dental and Vision Insurance Program (FEDVIP) and Federal Flexible Spending Account Program (FSAFEDS). The FEHBP features 283 plan choices in 2008, one less than in 2007. FEDVIP will begin its second season in 2008 after a highly successful first year, which saw an unprecedented 750,000 employees and retirees sign up for either dental or vision coverage, or both, OPM said in a statement. In one year, FEDVIP became the largest employer-sponsored dental-vision program in the nation, OPM said. “OPM works aggressively with health insurance plans to hold down premium costs for employees, retirees and dependents, while at the same time negotiating expanded coverage,” said Linda Springer, OPM director. To see more, go to: www.opm.gov/news/opm-holds-average-fehb-premium-increase-to-about-two-percent-for-second-year,1324.aspx

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