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In response to a congressional request, GAO provided information on: (1) Federal Employees Health Benefits Program (FEHBP) reserves over a 7-year period from 1979 to 1985, including a comparison of the reserve balances with targeted levels; and (2) the different strategies for regulating reserves and the advantages and disadvantages of each.

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Recommendations for Executive Action

Agency Affected Recommendation Status
Office of Personnel Management 1. Unless Congress amends the Federal Employees Health Benefits Act of 1959 to provide program-wide adjustments in the government's contribution, the Director, OPM, should use future premium adjustments to regulate FEHBP reserves and avoid using refunds and benefit modifications as reserve adjustment strategies.
Closed - Not Implemented
OPM refuses to adopt this recommendation and considers the matter closed.

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