Open Season Time

Monday marks the beginning of a month-long adventure in decision-making for government workers. From then until Dec. 12, federal employees have an open season to enroll in 2006 health insurance plans and flexible spending accounts.

Instead of offering a single health care plan, each year the Office of Personnel Management negotiates with a large group of national and regional health insurance providers to participate in the Federal Employees Health Benefits Program.

That leaves employees with an intimidating but potentially empowering menu of options. The number of health plans available rose to 279 this year, with 30 new additions.

To choose your plan, visit OPM's interactive map of the country and click on your home state. The site provides a list of plans available and links to online brochures with information on costs and coverage.

You may want to shop around. OPM announced in September that enrollees in FEHBP will pay an average of 10 percent more in premiums this year than last.

In dollar amounts, the average single enrollee will pay $5.30 more every two weeks, which amounts to an additional $137.80 for the year. An enrollee with family coverage will pay an extra $12.79 biweekly, or $332.54 more annually. But that's only an average; prices differ across plans.

A number of insurance companies have begun to offer high-deductible, low-premium plans. While the initial biweekly premium savings may seem attractive, OPM warns: "While premiums are important, you also need to consider the difference in the out-of-pocket costs between the various plans. You are after the lowest total cost by the end of the year -- not just the lowest premium."

OPM offers these hints for navigating the choices:

• Look at the primary care physicians, specialists, and hospitals in your network.
• Are there specialists to treat your chronic condition?
• Is there a hospital close to your home in the network?
• Does the plan provide for prevention, early detection and intervention?

Flexible Spending

Don't forget about your open-season option to set up a flexible spending account for health care and dependent care costs. Employees have to sign up every year to participate in these accounts.

FSAs allow you to make pre-tax salary contributions into a Federal Deposit Insurance Corporation-insured savings account to pay for medical and dependent care expenses. See the July 28 Pay & Benefits Watch for details on what counts as a covered expense -- it may surprise you. Acupuncture, some infertility treatments, birth control, contact lenses and even reading glasses are covered.

With rising premiums, FSAs may be one tool for federal employees to rein in their health care costs. But the program has its downsides, too. If you don't use the funds in your account, you lose them. Employees have 14.5 months to spend the money before it disappears.

Eyes and Teeth

Already overwhelmed with the decisions? Things will only get trickier the next time around. OPM is planning on adding optional dental and vision coverage to open enrollment choices for 2007. The coverage won't include any subsidy from the federal government, but OPM can leverage the size of the federal workforce to obtain lower rates.

For More Information

Visit GovExec.com's 2006 FEHBP Open Season Guide for news and links to premiums, calculators and other information.