Creeping Health Premiums Series Number: republican party; national association of letter carriers
Many federal workers and retirees will pay more for health care next year if Congress adopts a Republican plan to base government premium contributions on a flat dollar amount pegged to overall inflation instead of a percentage of premiums based on faster-rising medical costs.</br></br>The government share of premiums (about 75 percent) stays constant even when premiums go up. But the GOP plan would cap federal payments next year at about $1,500 for singles and $3,400 for families.</br></br>Workers and retirees in low-cost plans could wind up paying little or nothing. But the GOP plan ties changes in the government cap to the regular consumer price index, which also may be adjusted downward. The government share now is based on a medical cost index that historically has increased much faster than the CPI.</br></br>About 70 percent of enrollees would pay more unless they moved into less-costly plans that might shave benefits to hold down premiums. The change would save the government millions by passing costs on to workers and retirees.</br></br>Meanwhile, the European Stars and Stripes newspaper quotes the Army surgeon general, Lt. Gen. Alcide M. LaNoue, as saying that Congress may force military personnel to pay part of their health care costs through co-payments or an enrollment fee.