Statement of Administration Policy: H.R. 2705 - Government Contributions to Federal Employees Health Benefit Program

(Revised LA 6/27/89)
(House)
(Ford (D) MI and 3 others)

The Administration agrees that legislative action must be taken to ensure stabilization of the Federal Employees Health Benefits Program (FEHBP) premiums, so that enrollees will not be adversely affected by the withdrawal of Aetna from the FEHBP. However, the Administration opposes H.R. 2705 because it relies on a highly artificial "phantom" premium based on the premium of a no-longer participating plan.

The Administration will shortly propose a premium stabilization formula that will adjust for Aetna's withdrawal from the program without resorting to the creation of a "phantom" premium and without increasing the burden for current FEHBP enrollees.