Transparency in FEHBP will drive down costs
Require for all health insurance providers in the Federal Employees Health Benefit Program to publish the proportion of premium dollars spent on medical care, administrative costs, and profits for each plan it provides on the OPM website starting in 2010. Any provider that doesn’t meet the 80% goal should be flagged.
Even though the information will not be available at the beginning of the open season, it is so important to enabling better healthcare decisions. We must become leaders in healthcare reform. The repeated declarations that we have the best health insurance program due to choice. It should be the best for managing costs too.
After the scandal at United Way some years ago, the Combined Federal Campaign began publishing the percentage of administrative costs for each charity and a benchmark of 25%. Contributors are able to make decisions on what charities to donate to. Overtime, administrative costs have come down for many charities because it matters to contributors.
We need to become better informed and additional information on how our premium dollars are spent will enable us to compare costs and determine which companies are serious about healthcare reform.