OPM to reconsider dental, vision contract bids

A recent decision by the Office of Personnel Management to reassess bids on a new dental and vision benefit has left the insurance providers that won the initial contract awards on hold.

OPM officials said Monday, however, that despite this obstacle, federal employees will not see a delay in the new benefit. Dental and vision coverage still will be available as of Nov. 13, when the annual open season for federal health insurance begins, an agency spokesman said. By law, OPM has to offer the new benefits by the end of the calendar year.

After awarding 10 contracts to insurance companies in May to offer the supplemental insurance, which is voluntary and does not include any government subsidy, OPM sent a letter June 7 informing the providers that it is redoing the contracting process.

The decision to reconsider bids came after Blue Cross Blue Shield of America's Federal Employee Program, the largest provider in the OPM-run Federal Employee Health Benefits Program, only was given a contract to offer the vision benefits.

"OPM is undertaking this step both to reaffirm the integrity of the procurement process and to put OPM in the best possible position to provide federal employees and annuitants access in the upcoming open season to high-quality, reasonably priced dental and vision benefits," the letter said, which a spokeswoman from the one of the insurance companies, GEHA, read to Government Executive.

Blue Cross Blue Shield filed a protest with the Government Accountability Office in May, which it dropped once OPM announced it would reopen the bidding process.

"We are all glad that they're looking at it again, revisiting it," a spokeswoman for the insurance provider said. "And [that they] can be more transparent about it. Everyone benefits."

The OPM spokesman said agency officials "listened to Blue Cross Blue Shield and that was instrumental in us moving forward to take another look at the process." But he could not comment on the specific reason for re-examining the bids because of the open procurement process. No new companies will be allowed to submit bids in this second round.

Until OPM makes a decision, the companies that did receive the dental contract in the first go-round -- MetLife, GEHA, United Concordia, Aetna, GHI, CompBenefits and Triple-S -- are on hold.

Karen Schuler, a spokeswoman for GEHA, said the company still is working internally to prepare to offer the dental benefits by November.

"GEHA is disappointed in the delay but we understand that it is necessary to eliminate any uncertainty about the results of the selection process," Schuler said. "We are anxiously awaiting word from OPM to begin the implementation process."

Ilene Margolin, a spokeswoman for GHI, said the company is "committed to pursuing this and [expects] that we will be able to increase the service we provide to federal employees."

Aetna released a statement that the company "remains committed to helping federal enrollees achieve good oral health and overall health," and Peyton Hamrick, the marketing director for United Concordia, said her company would not comment on an ongoing procurement process.