AFGE Praises House Majority Leader, Cong. Wolf(R-VA)

Friday March 2, 2007

WASHINGTON - The nation’s largest union of federal employees, AFGE, today expressed heartfelt thanks to House Majority Leader Steny Hoyer (MD) and Congressman Frank Wolf (R-VA) for co-sponsoring legislation which will increase the government's share of Federal Employee Health Care Benefit Plan (FEHBP) premiums from 72 percent to 80 percent.

“AFGE has consistently urged Congress to address health care affordability for the nation’s dedicated civil servants. We commend the Majority Leader and Congressman Wolf for introducing legislation that will go a long way toward addressing the affordability problem faced by federal workers, retirees and their families when choosing FEHBP plans. The additional benefit will be to the government, because this change will greatly improve agency prospects for recruiting and retaining the next generation of federal employees,” said John Gage, National President.

By increasing the government's share of premiums, the share the federal government pays will be brought more in line with what most private and state employers pay, which is 83.1 percent for single health coverage and 76.2 percent for family coverage, according to the Kaiser Family Foundation. As calculated by the Office of Personnel Management, the average employee would save approximately $509.08 per year under this legislation.

FEHBP has not been immune to sharp healthcare premium increases. Since 2001, federal employees have seen their health care premiums increase by more than 50 percent, while salaries adjustments have been much smaller. In the six months, FEHBP premiums increased by 6.4% , while federal employee pay adjustments increased by only 2.2 %.