1、Congressional Research Service The Library of CongressCRS Report for CongressReceived through the CRS Web94-615 EPWUpdated October 8, 1997Federal Employees Health Benefits ProgramPaul J. GraneyTechnical Information SpecialistEducation and Public Welfare DivisionThe Federal Employees Health Benefits
2、Program (FEHBP) is a health insuranceprogram for federal employees, annuitants, and their dependents. In 1997, about 9 millionpeople participate in 374 FEHBP plans nationwide. On average, the federal governmentpays 71% of the cost of FEHBP premiums; participants pay the remaining 29%. Theformula det
3、ermining the governments share of health insurance premiums and theenrollees share was to expire at the end of 1998, which, many believe, would haveresulted in an average increase of about 23% in enrollee premiums and a concomitantreduction in the government share. However, the Balanced Budget Act o
4、f 1997 (P.L. 105-33) established a new formula that permanently sets the governments share of premiumsat 72% of the average total premium cost of all plans in the FEHBP, weighted by thenumber of participants in each plan. The government share cannot exceed 75% of thepremium of any particular plan.Ba
