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Insurance Reserves: Strategies for Regulating the Federal Employees Health Benefits Program

HRD-87-10 Published: Mar 06, 1987. Publicly Released: Mar 06, 1987.
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Highlights

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.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status Sort descending
Office of Personnel Management 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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Topics

Employee medical benefitsFederal aid programsFederal employeesHealth care costsHealth care programsInsurance cost controlInsurance premiumsInsurance regulationInsurance claimsHealth benefits