Blue Cross And Blue Shield's Federal Employee Program (FEP) Adds More Than 65,000 Federal Workers As Subscribers

6/3/2004

From: Jackie Fishman of Blue Cross Blue and Shield Association, 202-626-8644 or jackie.fishman@wro.bcbsa.com

WASHINGTON, June 3 -- The Blue Cross and Blue Shield Government-wide Federal Employee Program (FEP), also known as the Service Benefit Plan, gained more than 65,000 new subscribers during the 2003 open enrollment season -- marking the program's 19th consecutive annual membership increase.

FEP now serves nearly 54 percent of all federal employees and retirees who receive their healthcare benefits through the Federal Employees Health Benefits Program (FEHBP). These subscribers and their families receive health coverage through their local Blue Cross and Blue Shield Plans.

Each year during Open Season, federal employees, retirees and their families may choose from more than 200 competing health plans as part of the FEHBP. FEP offers two benefit packages -- Standard Option and Basic Option. The same types of services are covered under both options, but at different payment levels. Basic Option has a lower premium than Standard Option and no deductibles, but members must use preferred providers to receive benefits.

"These enrollment gains are largely due to the program's ability to manage costs," said Steve Gammarino, Blue Cross and Blue Shield Association's (BCBSA) senior vice president, National Programs. "We are pleased that in this era of rapidly risening healthcare costs, we held premium increases to 9.9 percent for Standard Option and 8.3 percent for Basic Option."

The increases were well below the 2003 national average of nearly 14 percent as reported by the Kaiser Family Foundation and the Health Research and Educational Trust. The Service Benefit Plan's rate increases also were less than the 2003 overall FEHBP average of 10.6 percent for all participating health plans.

FEP uses several coordinated techniques to hold down costs while delivering exemplary care. For example, FEP contracts with pharmacy benefit managers (PBMs) to handle both retail and mail order prescription drug programs and negotiate the best drug prices. Other means of containing costs include monitoring member satisfaction, analyzing clinical coordination in partnership with providers and members, and providing health and wellness programs. In addition, members can access health advice and information through Blue Health Connection, a 24x7, toll-free nurse triage telephone and Web-site service.

The Blue Cross and Blue Shield Government-wide Service Benefit Plan has been part of the FEHBP since its inception in 1960. FEP's total of 2.2 million subscribers means it covers in excess of 4.3 million federal employees and their families out of the total 8.5 million people (contract holders as well as their dependents) who receive their benefits through FEHBP. BCBSA works with the U.S. Office of Personnel Management to administer the Service Benefit Plan.

The Blue Cross and Blue Shield Association is made up of 41 independent, locally operated Blue Cross and Blue Shield companies that collectively provide healthcare coverage for more than 88 million -- nearly one-in-three -- Americans. For more information on the Blue Cross and Blue Shield Association and its Plans, visit http://www.bcbs.com. For more information on the Blue Cross and Blue Shield Federal Employee Program, visit http://www.fepblue.org.