Proposed Changes with FEGLI and FEHB

In January of this year, The Office of Personnel Management (OPM) finalized a policy to protect federal employees from losing their health care benefits coverage were their plan to drop out, drop a level of coverage, or restrict its coverage areas. This change comes in time for the annual fall open season. Affected enrollees have until then to determine if they need to make a new choice for the upcoming year.

Under this new policy, enrollees who decide to forgo new coverage during the open season will be automatically converted to the same type of enrollment in their plan’s remaining option, if available. If this is unavailable it will be converted to the lowest-cost national plan.

To retirees, this new rule may sound familiar. A similar policy was created for retirees, but not to active employees until now.

Furthermore, OPM is considering setting a three year time limit in cases of disputes over eligibility under the FEGLI life insurance program. This proposed action would make it so suits of this kind could be brought to court no later than the end of the third year after administrative decisions had been finalized. In addition, the cases have to be brought against the FEGLI insurance company, not against the government.

To start the process, an appeal first must be brought to the employing agency for active employees or to OPM for retirees. These two agencies then provide for an appeal into federal court.

Don’t know where to start with your FEGLI claim or wondering how this new FEHB change will affect your health care benefits? Contact us today and let us help you get started on the right track.