Remarks of Admiral Earl L. Gay

America’s Health Insurance Plans (AHIP)/OPM FEHB Carrier Conference

March 19, 2015

(Remarks by Admiral Earl L. Gay, senior advisor to OPM Director Katherine Archuleta)

As prepared for delivery

Thank you, John. And thank you for your strong leadership of OPM's Healthcare and Insurance mission. Thank you for the hard work you and your team do to make sure that our 8.2 million Federal workers, retirees and their families get the high quality, affordable health care that FEHB provides.

As a retired naval officer, I know the value of teamwork. This conference is a splendid example of the teamwork between OPM and AHIP. I want to thank Mark Hamelburg of AHIP and Rhoda Schulzinger of OPM for all their hard work in putting this conference together.

As you know, for more than 50 years – half a century – the FEHB has partnered with insurers to offer affordable, reliable and high quality health care. As the largest employer-sponsored health insurance plan in the nation, our partnership with each of you in this room is critical to our mission, and that's to attract, develop, and retain a world-class 21st Century workforce that draws from the rich diversity of the people it serves.

When I thought about what I wanted to talk with you about today, I decided to share with you something that for me, is central to our responsibility to look out for the health of the Federal family that we serve. And that is our commitment to wellness and preventive care.

One way to do that is to make sure that the majority of adults in your plans get regular preventive screenings.

Let me tell you about how I learned very quickly how important it is to be screened. It was 2001 and I had just gotten back from another Arabian Gulf in SW Asia. I was the commander of a helicopter training squadron and was preparing to fly one of our aircraft cross-country to Pensacola, Florida. Back then, I was an avid runner, and had just finished a half-marathon when I went to see the flight surgeon for my annual flight physical.

She grounded me! She said my blood pressure was too high, dangerously high.

I couldn't believe it. She wanted me to start taking several medications right away. But, I said, 'I feel great. I'm a Navy pilot. I'm a leader. What are you talking about?'

When they say high blood pressure is the ‘silent killer' that is true.

I was grounded for three weeks, went for follow up tests, and now when I get up in the morning – like clockwork – I work out, come back and take my meds.

I was lucky. But as you all know, so many people are not. One in three Americans has high blood pressure – that's about 71 million people. And only about half of people with hypertension have their condition under control.

OPM is an active partner with the Department of Health and Human Services in the Million Hearts program. We are determined to do our part to convince all Federal employees and their families to get screened, and to make sure they follow through and work with their medical professionals to get and keep their blood pressure under control.

This is just one example of the important work we all do together. We should congratulate each other that for the fourth straight year, the 2015 average premium increase for Federal employees, retirees and their families was less than 4 percent – and the 2015 rate increase came in below the hike for 2014. We also offered our customers more choices of plans.

I hope that together we can continue such record premium stability and program growth. The Director and I want to commend John, his negotiating teams at OPM and all of you for another successful year. Looking ahead, we need that trend to continue.

As you well know, we continue to have challenging budgets.

We need to keep working together to hold the line and lower health costs. The more we do to keep health costs down, the better chance we have to continue your record of keeping premium increases in check for all our FEHB participants.

We need to do this not only for our current Federal employees, and for our retirees and their families. We need to do this to better help our agencies across government.

Just last week, our Director announced a comprehensive Recruitment, Engagement, Diversity, and Inclusion -- or REDI – roadmap. This strategy is designed to help us attract, hire, and retain the most talented Federal workforce now, and for many years to come.

The Federal government is competing with the private sector for this top talent. I know about this only too well.

One of my commands during my naval career was as head of the Navy's Recruitment Command. And while I'd like to think that the honor of serving ones country in the Navy was all we needed to make our case to prospective recruits, I know that the benefits we offered also helped us as well.

Because of the continued partnership of OPM and the insurance industry, we can guarantee the people we recruit for Federal service that the Federal benefit package we can offer them is on a par with anything offered by any private sector employer.

This year, we're looking forward to a smooth implementation of the Self Plus One enrollment category to the FEHB program. The new enrollment type will provide more flexibility to FEHB members. And, it will bring our program more in line with other large employers, including state and local governments that offer three-tiered enrollment options. This change will align FEHB plans with other Federal benefits OPM offers – such as dental and vision.

Before I let you get on with today's conference, I want to give you a quick update on the Affordable Care Act, specifically the Multi State Plan Program, which as you know is an ACA provision that Congress has entrusted to OPM.

About 16.4 million Americans have gotten health care coverage since the Affordable Care Act became law five years ago this month.

Director Archuleta crisscrossed the country again this year, participating in more than a dozen open enrollment events, particularly in the under-served communities.

We greatly appreciate the Blue Cross and Blue Shield Association's continued support and participation in the MSP. And we were happy this year to welcome our MSP COOP partners. In 2015, more than 200 MSP plan options are available in 36 states, including the District of Columbia.

We will continue to welcome new issuers to this important program. John's team of experts is ready to help. Talk with us about how you can be a part of the MSP program.

We need as many players as possible at the health insurance table. It's good for America and it's good for your industry.

You know, I decided to return to government service after retiring from the Navy because service is in my blood.

I chose to join OPM because I know the importance of the work we do. We make sure that the Federal government's most precious resource- its people – are taken care of.

When our Federal workers are protecting our borders, or helping Americans recover from the ravages of Mother Nature, or making sure that our water and food are safe to drink and eat, they don't have to worry about the health of their families. We have that.

So thank you again for more than 50 years of partnership.

We have always watched out for the millions of Federal workers, retirees and their families. And with your help, the FEHB will be THE model insurance plan for many, many years to come.

Thank you.