NTEU Supports Legislation Raising FEHBP Coverage Age for Young Adults

Press Release March 6, 2008

Washington, D.C.—The head of the nation’s largest independent union of federal workers today voiced strong support for legislation that would boost the maximum age to qualify for dependent coverage under the government’s health benefits program to age 25 from 22. The measure was expected to be introduced today by Rep. Danny Davis (D-Ill.).

“Passage of this bill is an opportunity to provide federal workers and their families with a benefit that is in the public interest,” said National Treasury Employees Union (NTEU) President Colleen M. Kelley, adding that young adults are the fastest-growing age group among the uninsured. “College educated or not,” she said, “22-year olds face waiting periods, temporary positions and lower salary offers as they enter the job market. Health care is simply not available to many of them at a price they can afford.”

Recent studies, such as one by the Commonwealth Fund, have found that this age group is often healthier than older adults and require far lower per capita health care expenditures. Thus, raising the coverage age for the Federal Employees Health Benefits Program (FEHBP) from age 22 to 25 would help add more young adults to the pool of health care participants and may lower the average costs of the group insurance program.

Several states have enacted new legislation in an attempt to combat rising rates of uninsured young adults. Utah recently changed its law so that a dependant may not “age-out” of health care coverage until their 26th birthday. New Jersey passed a law extending coverage for dependent children until age 30.

Affordable health care is just as important to federal agencies as it is to employees and their family members, President Kelley said. “When agencies can’t compete effectively with the private sector for the most qualified employees,” she said, “the American people will be deprived of the quality workers they depend on to deliver the programs they want, need and deserve.”

FEHBP is the nation’s largest health insurance plan, 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 and their families from sharp increases in health care premiums.

Affordable health care for federal employees, retirees and their families is one of NTEU’s top legislative priorities for 2008.

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