A health-insurance plan available to all federal workers and
retirees has once again proven itself to be the model of Medicare
reform.
As The Washington Post reported Sept. 21, insurance premiums are
rising for government employees because, among other things, the
federal workforce is aging. Indeed, the Post says typical federal
workers are at an age "when health care begins to play a bigger
role in people's lives."
But thanks to the Federal Employee Health Benefits Program, their
premium increases will be among the lowest in the nation next year.
FEHBP was able to ease the pressure from rising rates because of
competition, negotiations with health plans and good financial
reserves.
As The Heritage Foundation has shown, what's happening with the
federal workforce could benefit the next generation of seniors. In
the next decade, 77 million baby boomers are expected to retire.
And Medicare, designed in 1965, won't absorb the shock so easily.
Serious reforms must be done now before it's politically impossible
to do so.
That's why Heritage and the House advocate using FEHBP as a model
for Medicare reform. Since 1960, it has met the needs of workers
and retirees who dedicated their lives to public service. That
model can work for the rest of us, too.
For more information or to receive an e-mail version of
"Medicare Maladies," contact [email protected] or call
Heritage Media Services at (202) 675-1761.
Report Health Care Reform
Medicare Malady #48: FEHBP To The Rescue
September 23, 2003 1 min read
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