HCR-OPM Option Federal/Postal Letter-12.16.09

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December 16, 2009

Senate Majority Leader Harry Reid
United States Capitol S-221
Washington, DC 20510

Dear Majority Leader Reid:

The undersigned organizations, representing 4.6 million federal and postal workers and
retirees, are writing to express our concerns about a compromise proposal being
considered in the Senate’s health care reform bill that would require the Office of
Personnel Management (OPM) administer a health care delivery system consisting of at
least two national, private nonprofit insurance plans or a government plan.

First, if changes of the scope being discussed materialize, and OPM is given significant
new responsibilities to administer additional national plans, it would be necessary for the
agency to be provided with considerable additional resources. Its core mission, of
attracting the best and brightest to federal service, and supporting them in their work,
must be maintained at the agency.

Second, we are worried that this proposal could undermine the integrity of the FEHBP,
which is an earned employer-sponsored worker and retiree benefit program. For that
reason, we strongly recommend that the FEHBP and the proposed OPM-administered
plan be negotiated and managed separately and have separate risk pools, to ensure that
FEHBP continues to offer federal workers and annuitants comprehensive coverage with
affordable and predictable premiums. Any merging or opening up of FEHBP now or in
the future would amount to one employer sponsored plan essentially subsidizing other
groups of employees. While we support efforts to provide health coverage to all, federal
employees or retirees should not be the only employer sponsored plan in the position of
subsidizing new coverage for other groups.

Third, we oppose any mandate that would require carriers currently participating in
FEHBP plans to additionally offer coverage in any newly-created plan administered by
OPM.

Above all, any proposal to have OPM administer a public plan must guarantee that
federal workers and annuitants who like the health insurance coverage they currently
have through the FEHBP are allowed to keep it, just like other Americans who are
covered by employer-sponsored health plans.

If the Senate moves forward with the proposal, we urge you to ensure that the legislation
establishes appropriate safeguards for the FEHBP and provides sufficient resources for
OPM to carry out its core mission as well as any new responsibilities.

Sincerely,



American Foreign Service Association (AFSA)
Federal Managers Association (FMA)
National Active and Retired Federal Employees Association (NARFE)
National Air Traffic Controller Association (NATCA)
National Association of Government Employees (NAGE)
National Association of Letter Carriers (NALC)
National Association of Postal Supervisors (NAPS)
National Association of Postmasters of the United States (NAPUS)
National League of Postmasters of the United States
National Rural Letter Carriers' Association (NRLCA)
National Treasury Employees Union (NTEU)
National Federation of Federal Employees (NFFE)
Professional Aviation Safety Specialists (PASS)


Staff Contact:
Dan Adcock
Legislative Director
National Active and Retired Federal Employees Association (NARFE)
606 North Washington Street
Alexandria, VA 22314-1914
Office: 703 838 7760 x264
Fax: 703 838 7782
E-mail: dadcock@narfe.org