Cardin Amendment (#4304) on Adult Dependent Coverage in FEHBP
Senator Cardin has offered an amendment (#4304) regarding coverage of adult dependents in the Federal Employee Health Benefits Program (FEHBP). A vote is possible later today, as Chairman Baucus has indicated he wishes to dispose of pending amendments prior to calling up new ones. While a CBO score is not available, this amendment may be subject to a Budget Act point of order for exceeding aggregate spending caps.
Summary:
- The amendment would expand health coverage for adult dependents in the FEHBP to all those under 26 years of age, as well as spouses of dependents. Currently, only unmarried dependents under 22 years of age are eligible for FEHBP coverage.
Considerations:
- Because the definition of dependent is defined in statute, the Office of Personnel Management, which administers FEHBP, has indicated that it cannot implement PPACA’s extension of coverage to adult dependents prior to January 1, 2011, when the expanded dependent coverage mandate in PPACA becomes effective for the FEHBP.
- Senate Democrats – who wrote their health care legislation behind closed doors – could have included language in PPACA to address this particular concern, but chose not to do so.
- In publishing regulations regarding the expanded mandate for adult dependent coverage, the Departments of Labor and Health and Human Services concluded that the mandate would raise premium costs for the private sector; the same calculus could apply to FEHBP premiums as well.
- The relatively rich benefit packages in the FEHBP could result in some adult dependents declining other available sources of insurance coverage in order to stay on a plan funded by generous federal subsidies, thus raising costs to taxpayers.
UPDATE: A brief clarification to this summary of the Cardin amendment: Leg Counsel has opined that the language would NOT allow spouses of dependents to obtain benefits through FEHBP. It would however allow married dependents to obtain FEHBP coverage (but only for themselves and not their spouses). Sorry for any confusion.