Waiver of Health Insurance Premiums

A Federal employee requested waiver of an underdeducted health insurance premium. The employee stated that he changed his health insurance plan when he was transferred and that several other payroll changes occurred at the same time. Therefore, he contended that he could not have reasonably been expected to know that an error had been made. The employee brought the error to the agency's attention eight years later. The Claims Group denied the request for waiver because the claimant should have expected the premium deduction to increase. The employee stated that he received no information about the amount of deductions for the new plan. Since he perceived the underdeduction to be an administrative error, the claimant requested that the overpayment be waived. GAO held that the employee should have known of the mistake when his leave and earnings statements did not reflect a change in deductions or changes to his new health plan code number. Further, the employee should have been aware of premium rates during subsequent open seasons. In fact, the claimant received the benefits of the most costly health plan. Accordingly, GAO sustained the Claims Group's actions in denying the request for waiver.