Weekend Reading on Your Federal Benefits

September 28, 2018 George Ray

(for the week of September 22nd – September 28th)

You’re too busy during the week to keep up on all the news around your employee benefits and pay. My weekly summary of the most interesting and relevant news stories could help you and includes my comments and insights.

By the way, if you’ve read something about your employee benefits that you think is important or interesting, share it. And, let me know about news sources that you follow. Have a great weekend.

George Ray
Federal Benefits Online

In this week’s benefits news for Feds, a shutdown-averting bill is awaiting the President’s signature, not many Feds are phasing into retirement these days, next year’s health care premiums shouldn’t increase as much as usual, and there are three things you should do to prepare for Open Season. 3-2-1. Let’s go.

Lawmakers Send Shutdown-Averting Spending Bill to Trump's Desk

From Govexec.com

To get ahead of the Sunday shutdown deadline, The House passed a spending bill that was sent to the President for his signature. According to House Speaker Paul Ryan (R-WS), the President has indicated that he will sign the bill.

The bill included full fiscal year spending levels for several agencies, including Defense, Labor, Education, and Health and Human Services, as well as a Continuing Resolution through December 7th for agencies whose appropriations have not yet been determined. Some are happy to see that some agencies will likely get their 2019 fiscal year funding on time, but others see a problem that we now seem to be funding the government agency by agency. On a positive note, it will be the first time in ten years that the Department of Defense won’t be operating under a Continuing Resolution. Is the glass half full or half empty? That may depend on how thirsty you are.

Phased Retirement Participation Still Vastly Short of Initial Predictions

From Federalnewsradio.com

Six years after Congress first approved it, and after some foot-dragging by OPM on the program’s initial implementation, the government’s phased retirement program has had only modest success. Prior to its launching, there was lots of anticipation about the program which allows employees to gradually step-down from their jobs and ‘phase into’ retirement. The Congressional Budget Office originally projected that 1,000 employees would enter phased retirement at any given time.

As of August 1st, only 417 employees had used the program to work part-time while also receiving a portion of their FERS (or CSRS) pension. This could simply be Feds being cautious about the program as more employees and agencies learn about it, but rollout of the program was also slow as agencies were required to issue and implement their own specific guidelines. One agency, the Social Security Administration, chose not to offer the program to its employees at all.

The good news is that the numbers seem to be increasing. With nearly one-third of the Federal workforce eligible for retirement and 45% of the workforce over age 50, we’re in need of a way to transition existing workers into retirement while allowing them to pass on their knowledge and skills to the next generation of employees. The phased retirement program can help, but we’ll need to get many more employees and agencies to see its benefits.

FEHB Premiums to Rise by 1.5% in 2019

From Fedsmith.com

As Open Season approaches (this year it will be from November 12th through December 10th), we begin to ask ourselves the annual dreaded benefits question— ‘How much will health insurance costs go up this year?’.

OPM announced on Wednesday that we should expect to see the smallest increase in premiums since 1996. That’s good news. On average, costs will rise only 1.5%. Increases do vary based on the plan and options, and some Feds may even see a decrease in costs. For example, the Blue Cross and Blue Shield Standard Option (the most popular plan) will see ‘self-only’ enrollees paying about $0.93 less per pay period, and families paying about $3.74 less per pay period.

That doesn’t mean you should relax or be complacent. It’s always important to do some research as Open Season approaches. Look back at your health needs and health costs during this year. Make certain that you're getting the coverage you need at a reasonable price for you and your family—even if the costs won’t be going up quite as much as in previous years. As a matter of fact, here’s . . .

3 Things To Do This Open Season

From Govexec.com

This week Tammy Flanagan provides some timely advice. As I mentioned above, you should see a modest increase in your health insurance premiums for 2019—on average a 1.5% increase. But you and your plan may not be average, so you’ll want to look closely at how you’ll be affected by the 2019 plan rates. Ms. Flanagan’s three things to do include:

Look at how your existing PLAN will change in 2019. Review premiums, deductibles, copays, coinsurance, and out-of-pocket maximums. Look at prescription drug coverage and potential changes to the network providers. Are yours still in the network?
Look at how YOU have changed or will change in 2019. How has your health been over the last year? Are you expecting any surgeries? Will you need any new medications? Will you reach the age for Medicare coverage?
Look for the key differences for your situation. Is your tax rate expected to change? Could you get benefits from contributing to a Health Savings Account (HAS)? Should you consider using an HMO to get the convenience of coordinated healthcare?

It’s important not to focus solely on the premium costs. Yes, they are important, particularly if your budget is tight, but take the time to look thoroughly at coverage and other options before making your decision. You and your family will be better off for it.

See you next week. Thanks!

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