OPM awards contract for dental and vision insurance

The Office of Personnel Management announced Friday that it has awarded contracts to 10 companies to provide dental and vision insurance to federal employees for the first time.

OPM, which oversees benefits for federal employees and retirees, selected MetLife, GEHA, United Concordia, Aetna, GHI, CompBenefits, and Triple-S for dental coverage and Vision Services Plan, BCBS Vision, and Spectera for vision.

The supplemental insurance, which is voluntary and does not include any subsidy from the government, will be available starting Nov. 13, when the annual open season for federal health insurance begins.

"This new dental and vision program provides new health care choices for the federal family," said Linda Springer, director of OPM. "Those covered will be able to enroll for comprehensive dental benefits, comprehensive vision benefits, or both, and employees will be able to use pretax payroll deductions to acquire their additional dental and vision benefits."

OPM said the size of the federal workforce will be leveraged in negotiations with the contractors, but a spokesman said the agency has not yet negotiated benefits, rates and contract terms. That information, he said, will be made available prior to the Nov. 13 offering.

In its solicitation of contracts, OPM said all dental insurance plans should provide preventative care such as oral evaluations, topical fluoride treatment and sealants, for a small co-pay; more extensive services such as extraction and root canal surgery should be covered at 70 percent after a deductible; and major dental work such as permanent crowns, bridges and dentures should be covered at 40 percent after a deductible. Deductibles are not to exceed $100. OPM also said it expects contractors to provide orthodontia coverage of at least 30 percent.

For vision coverage, OPM wants providers to offer full coverage for annual eye examinations, including comprehensive exams for vision problems such as glaucoma, diabetes and ocular hypertension. Companies may contract to provide eyewear, such as contact lenses and eyeglasses, as well.

Reps. Tom Davis, R-Va., chairman of the House Government Reform Committee, and Jon Porter, R-Nev., chairman of its Subcommittee on the Federal Workforce and Agency Organization, had pushed OPM to consider regional health providers in awarding the dental and vision contracts. The dental providers chosen include both national and regional carriers, but the vision providers are only national.

The government must provide dental and vision coverage to federal employees by December 2006 under the 2004 Federal Employee Dental and Vision Benefits Enhancement Act. The coverage will be available to employees, retirees and their dependents.

OPM awarded another key benefits contract this week when it gave Hewitt Associates of Lincolnshire, Ill., a 10-year, $290 million deal to carry out its Retirement Systems Modernization project.

The contract works toward a goal of authorizing requests for new retirement benefits within five days and achieving at least 95 percent accuracy in payments. Many federal retirees find it takes months until they receive accurate annuity payments.

Central to the contract will be the creation of an entirely electronic personnel records system, where employees can access their records of insurance and employment history and salary. The technology also will allow employees to project salary increases, Social Security and Thrift Savings Plan benefits to actively manage finances for retirement planning.