Re: Legislation Introduced to Increase Government's Share of Health Insurance Premiums

I am pleased to tell you that legislation was introduced last week by Congressman Steny Hoyer (D-MD), H.R.1307, to increase the percentage of health insurance premiums that the federal government pays for its employees.

Under current law, the federal government pays an average of 72% of the health insurance premiums for employees participating in the Federal Employees Health Benefits Program (FEHBP). This bill would increase the government's share to an average of 80% of premium, which would be more in keeping with private sector practice.

The legislation could make a significant difference in the affordability of health insurance, especially for lower paid federal employees. For example, a federal employee currently participating in the Blue Cross/Blue Shield Standard Option Family Coverage Plan pays $80.l9 every two weeks. If this legislation were adopted, the employee premium would drop to $55.34 every two weeks.

It is very important that we try to get as many cosponsors as possible on H.R.l307. I have attached a sample letter that I hope you will share with your fellow employees. Please ask the members of your Chapter to send it to their Member of the House of Representatives asking that they cosponsor H.R.l307 as soon as possible. Thanks again for your help on this important bill.

Colleen M. Kelley
National President