NTEU Lines Up Strongly In Favor Of Hoyer Bill Raising Federal Share of Health Care Premiums

Press Release February 9, 2005

Washington, D.C.—The nation’s largest independent union of federal workers today offered its strong support for bipartisan legislation that would help expand the number of federal employees who can afford health insurance, and provide government agencies with another important tool in their recruiting competition with the private sector.

The National Treasury Employees Union (NTEU) said the bill, introduced by Rep. Steny Hoyer (D-MD), a senior Democrat in the House, would increase the government’s share of premiums for the Federal Employees Health Benefits Plan (FEHBP) from an average of 72 percent to an average of 80 percent.

“This long-overdue increase would not only provide a greater number of federal workers with the ability to pay for FEHBP coverage,” said NTEU President Colleen M. Kelley, “it would help the federal government become an attractive employer.” NTEU has long supported an increase in the government’s share of FEHBP premiums.

Rep. Hoyer, who was joined in cosponsoring the legislation by a bipartisan group of 46 House members, including Rep. Frank Wolf (R-VA), made a similar point.

“In order for taxpayer dollars to be spent efficiently and effectively,” he said, “the government must be able to attract and retain quality employees. This bill will help make the government more competitive in the marketplace for employees.”

FEHBP is the largest health insurance plan in the nation, insuring more than nine million federal employees, retirees and their families. But even with its enormous clout, FEHBP has not been able to shield federal workers from sharp increases in health care premiums, which have risen, in total, by more than 50 percent since 1998.

The Hoyer legislation would bring the federal share of the premiums more in line with those paid by private sector employers. The Kaiser Family Foundation, which has long studied health care and its costs, estimates that private and state employers pay an average of 83.1 percent for single coverage and 76.2 percent for family coverage for their employees.

The Maryland Democrat said the Office of Personnel Management (OPM) has estimated that the average federal employee would save approximately $509 per year under his legislation.

As the largest independent federal union, NTEU represents some 150,000 employees in 30 agencies and departments.

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