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"Health insurance premiums for federal employees will increase by an average of 1.8 percent next year" - "Amazing" is right

Health insurance premiums for federal employees will increase by an average of 1.8 percent next year, the lowest annual increase in the government's employee program since 1997.

Officials said they substantially slowed the rise in 2007 insurance rates by dipping into excess financial reserves of the Federal Employees Health Benefits Program, which provides about $33 billion in health-care benefits annually. They said the reserves had increased in recent months because insurance claims and other expenses had not grown as fast as estimated.

Next year, 63 percent of FEHBP enrollees "will see no increase in their premium," said Linda M. Springer , director of the Office of Personnel Management, which administers the program. "That is amazing."

"Excess Reserves Help Slow the Rise in Health-Care Costs," by Stephen Barr, The Washington Post, September 20, 2006

September 20, 2006 06:37 AM    Caught Our Eye ~   Economics