I didn't mean to imply there was any change in the FEHB coming, I just keep seeing threads on mega corps changing benefits for retirees and it makes me think of the 'what if' situation for the federal employees.
Yes, I see now, thanks. In the meantime, I think there's no worry for FERS/CSRS eligibles with FEHB in retirement... unlike mega corps, which seem to dropping their retiree plans as fast as possible. But many companies are now looking for subsidies under the new health care reform law for their retirees between 55 and Medicare eligible age:
Firms Plan to Eliminate Retiree Health Plans - Planning to Retire (usnews.com)
Firms Plan to Eliminate Retiree Health Plans
Employers are increasingly trying to avoid paying for health insurance for retirees who leave the workforce before they become eligible for Medicare. Some 43 percent of companies currently offering retiree medical
http://money.usnews.com/money/blogs...-plan-to-eliminate-retiree-health-plans.html#to soon reduce or eliminate them, according to a recent Towers Watson survey of mid and senior level benefit professionals at 392 companies providing health plans to retirees.
[See
7 Ways Laid-Off Baby Boomers Can Find Health Insurance.]
“Beginning in 2014, when health insurance exchanges become operative, pre-65 retirees will have access to competitive plan choices without preexisting condition underwriting,” says Dave Osterndorf, a senior consulting actuary for Towers Watson. “This important development will likely accelerate employers exiting sponsorship of retiree health programs and, in many cases, adopting account-based solutions.” Towers Watson suggests that some companies will a portion of their current retiree health spending into a medical reimbursement account such as a health savings account or retiree medical savings for former employees to help with premium costs and uncovered expenses.
Until these health insurance exchanges become operational in 2014, many employers plan to accept federal subsidies to maintain their retiree health care coverage. The Obama administration announced earlier this month that companies will get $5 billion from the federal government to maintain health care coverage for early retirees. Most companies that offer retiree medical benefits intend to apply for the Early Retiree Reinsurance Program, which will subsidize employers that provide health insurance to retirees age 55 and older who are not yet eligible for Medicare.
[See
How the Health Care Bill Impacts Retirees.]
More than three-quarters (76 percent) of companies with retiree health plans plan to pursue reimbursement through the program which goes into effect June 1, according to a Hewitt Associates survey of 245 large employers that offer medical benefits to over 1.3 million retirees. Employers that are accepted into the program, which was created by the health reform bill, will be reimbursed for up to 80 percent of each retiree’s medical expenses between $15,000 and $90,000.
