News Release

New Orleans, LA – U.S. Office of Personnel Management Director Kay Coles James addressed the National Directors and Chief Executive Officers of the 43 local Blue Cross/Blue Shield Plans at their Board of Directors meeting in New Orleans, Louisiana. (BC/BS is the largest organization in the Federal Employees Health Benefits [FEHB] program.)

During her address, James discussed the strengths of the FEHB program, explaining how distinctive features such as nationwide availability and choice have made it a model for President Bush and others. "What is most noteworthy is not its size – although the FEHB is the nation’s largest employer-based health benefits program serving over eight million federal workers, retirees and their families," said James. "But what truly distinguishes the FEHB program and makes it a pacesetter and a model is how the program operates. An important and distinctive feature is nationwide availability. No matter where one lives – from Portland, Maine, to Portland, Oregon – every enrollee can choose from at least a dozen fee-for-service options in addition to local HMOs based on benefits, quality and price."

James reminded the carrier that to keep the program a model they must keep premium costs down. "I have insisted that our staff be tough negotiators for the FEHB program in the past. I will be demanding a tough stance this year," James warned. "I challenge you to develop creative and innovative options that help contain costs and maintain affordability, because I know the best ideas will come from the providers in the marketplace."

James also encouraged the carrier to be sensitive to the needs of employees. "It is vitally important in these uncertain times that the patriotic men and women who are working for America have backup supplies of the medications they rely on," James explained. "We need your help to make certain that our members can get additional supplies of medications as backup for emergency situations, and we especially need to build in flexibility so that Reservists and National Guard members can meet their medium-term drug supply needs."

In closing, James said that "while we look at issues from one year to the next, one of the best ways of controlling utilization over time is to keep people healthy. So, I would ask that you make preventive health an integral part of your program. Your challenge – and mine – is to keep our program a model. Be creative, think long-term and embrace prevention, and the FEHB program will continue to be a source of security for our public servants and an inspiration for all Americans. It’s a win-win situation for both of us."

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OPM oversees the federal work force and provides the American public with up-to-date employment information. OPM also supports U.S. agencies with personnel services and policy leadership including staffing tools, guidance on labor-management relations and programs to improve work force performance.

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