Federal Daily News

Senate bill proposes moving Medicare seniors into FEHBP

Republicans this week announced reform legislation that would wind down Medicare and open the Federal Employees Health Benefits Program to all Medicare-eligible seniors.

The Congressional Health Care for Seniors Act (S.2196), introduced on March 15 by Sen. Rand Paul (R-Ky.) and co-sponsored by Republican Sens. Lindsey Graham (S.C.), Mike Lee (Utah) and Jim DeMint (S.C.), would allow all Medicare-eligible patients to enroll in FEHBP plans beginning in 2014. The existing Medicare program eventually would sunset.

The legislation also gradually would increase the initial eligibility age for seniors over a period of 20 years from age 65 to 70, at a rate of three months per year. The sponsors claim the plan would save $1 trillion over the first 10 years.

“Medicare, as we know it, is broken and in desperate need of reform,” Paul said in a statement. “The CHCSA fixes the Medicare system, and gives seniors access to the best health care plans enjoyed currently by members of Congress and does so without breaking the bank; in fact this plan will save taxpayers $1 trillion over 10 years.”

Joseph Beaudoin, president of the National Active and Retired Federal Employees Association, was less than enthusiastic about the proposal.

"This is a kill-two-birds-with-one-stone kind of proposal that would both bring down Medicare as we know it and threaten the stability of the FEHBP,” Beaudoin said in a statement. "Given the current environment of budget attacks on federal employees, retirees and Medicare, the federal workforce and all Americans should be wary of plans like the one proposed today.”

A briefing document released by Paul acknowledges that moving seniors into FEHBP would raise the cost of coverage for federal employees. An individual federal employee “would be on the hook for $400 more per year of their own health care costs,” the document states.

“But the federal workforce already receives generous benefits and compensation,” the paper contends. “This is a sacrifice our federal workers should be prepared to make so that the citizens who pay their salaries and benefits can have the same health care benefits.”



 

Reader comments

Fri, Jun 1, 2012 Lorna Paisley Joliet Il

Stop fighting wars and we can save trillions even faster.

Tue, Mar 27, 2012 Phoenix

As a retired CSRS employee who lived through the 1980s push to kill off CSRS with FERS, not for employees benefit, but as a means of reducing benefits paid to retirees and using FERS participants as a method of propping up the then failing Social Security system, be advised that federal employees/insureds are a "captive work or other force." That means the government can push and shove those affected around for its benefit knowing full well that it harms the impacted individuals. My sister has FERS and lives from hand to mouth. Her retirement benefits will run out. Due to Darwinian, deregulated wolves on Wall Street, the return on her personal contributions took a nose dive. Paul Ryan says federal employees should sacrifice for the greater good. Let the 1% lead the way. I worked for the government for 35 years, from 1990 until 2003, my class of employees had only three cost of living increases thus reducing my high three for purposes of calculalting retirement benefits. The Ryan proposal will not only destroy vested rights, it sets those coming into the group up for unilateral action by bean counters against their interests. As a retiree, although I pay full freight (same amount as I paid while employed for BCBS), they have made Medicare primary, thus, losing me my treating physicians and BCBS only pays what Medicare pays to the decreasing number of providers who are willing to accept Medicare patients. If it sounds too good to be true, it is.

Mon, Mar 26, 2012 JUMPING SHIP Ohio

I used vote - mostly - republican; but this party is making it more and more difficult every day for me to vote republican. Are you joking right now...push all seniors into the a health care system designed for FED's? Great, freeze our pay for 5 years then jack our health insurance premiums through the roof by placing us into the HIGHEST RISK group there could ever be. Either the republican party has dumbed down, or the party is hoping the entire group of federal employees has...

Mon, Mar 26, 2012 edward butkiewicz philadelphia, pa

26 Mar 12 1. Leave Medicare as is -- It is not broken as some tend to state for their own gain -- Better yet, fire them!! 2. To cope with the Medicare into FEHBP, annuities require 40% increase for retirees 3. Edit these comments as necessary!! 4. Thanx

Mon, Mar 26, 2012

Seniors will see at least a 400% increase in their monthly health care costs just from the transfer (Medicare to FEHBP). Coverage will not be nearly as comprehensive; there will be most costly co-pays; & they will constantly have to shift companies (as they now have to do with their Par B Medicare). If Medicare is "broken & in desperate need of reform" as Rep. Paul says, then fix the broken parts. This proposal "fixes" nothing. It eliminates! In a country where companies have dumped employee benefits (defined pensions, medical benefits, union bargained wages) ad nauseum, apparnetly the Federal government feels it can follow suit & break faith.

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