FEHB Program Carrier Letter
Fee-for-Service Carriers

U.S. Office of Personnel Management
Office of Insurance Programs
Letter No. 2002-34 Date: September 25, 2002
     Fee-for-service [ 31 ]   Experience-rated HMO [ 31 ]   Community Rated [ n/a ]

SUBJECT: Federal Employees Health Benefits (FEHB) Program Study on the Cost of Mandated Benefits

As the Office of Personnel Management announced in the Open Season news release dated September 17, 2002, Director Kay Coles James has taken a number of aggressive actions to enhance the FEHB Program.

Steps taken by Director James included initiating a comprehensive outside audit to review the "true cost" of mandated services. The purpose of this carrier letter is to request that your Chief Medical Officer complete a report on your health plan's cost and utilization data for our vendor, Hay Group, to use in conducting its assessment of mandates.

Since we are operating under a tight timeline, we need your assistance to collect this data and submit your report by no later than October 4, 2002. Please complete and return it to the attention of your contract specialist either electronically or by FAX. Your contract specialist will also be available if you have any questions. Thank you.

We appreciate your continued cooperation.

 

Sincerely,
Abby Block signature
Abby L. Block
Assistant Director
   for Insurance Programs
  

Enclosures    [Word Document]

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