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How Does the New Health Care Reform Law Affect FEHB Enrollees?

March 24, 2010

Since the health care reform legislation passed last weekend, many My Federal Retirement readers have emailed us asking how the new law will specifically affect those enrolled in the Federal Employees Health Benefits Plan (FEHB).

Most of the questions have centered on how the new health care law will affect future premium rates for both active federal employees and retirees, as well as any tax implications it might have.

While President Obama signed the bill into law Monday, the Senate has not finished debating and voting on the various "fixes" to the bill that were approved by the House.  This makes it difficult at this point to know all the answers to questions posed by our readers.

However, discussed yesterday: "federal employees and retirees will be able to add to their health insurance plans their uninsured, unmarried adult children who have not yet turned 26."

Also, among covering other details of the bill, GovExec published an article Monday stating: "The bill introduces an excise tax on high-value employer-sponsored plans, including many available through the Federal Employees Health Benefits Program. If the Senate accepts the changes, then insurance companies would pay a 40 percent tax on health care plans valued above certain thresholds, starting in 2018. The thresholds would be plans worth more than $10,200 in yearly premium payments for single coverage, and those worth more than $27,500 for family coverage."