News Release

FOR IMMEDIATE RELEASE May 8, 2003

Contact: Edmund Byrnes (202) 606-2402

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Washington, D.C. – The Director of the U.S. Office of Personnel Management, Kay Coles James, spoke today before an audience consisting of people interested in why President George W. Bush considers the Federal Employees Health Benefits program to be a “model program. ”The event was sponsored by the Heritage Foundation and attended by over 150 Congressional aides, health experts and health-care industry representatives.

During the opening of her presentation, James reminded the audience that the United States has a health-care system that many envy, and try to emulate.

“Our nation has the finest health care services in the world, with hospitals and doctors in every community,” said James. “People are not lining up at the borders to leave our country to get quality health care; they are lining up to get in. And I believe all Americans ought to have affordable access to the caring physicians, the life-saving advances in medicine and medical technology, and the prescription drugs that are helping people live longer, healthier lives.”

James also spoke of the President’s goals to keep the American health-care system up-to-date and responsive to the needs of the American people; using the FEHB program as a model.

“He envisions a system where all Americans have choices, a system that trusts patients, working with their health care professionals, to decide which treatment is best for them,” said James. “When the President and his domestic policy advisors set about developing their framework, they looked to a model that offers national availability, provides exceptional choice, and uses private-sector competition to keep costs reasonable, ensure high-quality care, and spur innovation.”

Since its inception in 1960, the FEHB program has operated along the lines of a decentralized model. When it was created, Congress envisioned the program as being in line with the best-practices of private employers and as part of a well-rounded personnel benefits package.

That is still OPM’s goal 40 years later. OPM also is creating new interest on the “demand side,” incorporating consumer education and a new focus on personal responsibility in driving both quality and affordability. It is an approach that OPM believes holds great promise for the general health-care marketplace.

James noted the drive to increase information availability as a key component for health care consumers getting the services they want. “New web-based tools in 2002 let federal employees and retirees get online premiums and compare benefits and customer satisfaction ratings of national and local health plans. They can make the comparisons from their homes, from their offices, or any other place they can surf the web. By increasing access to information, we are encouraging our employees to get the facts so they can make the best choice for themselves and their families. This is the future of health care. Young or old, all Americans want quality health care choices and options. And that is one of the great strengths of the FEHB model.”

In closing, James said: “In the competitive market fostered by the FEHB Program, new treatments and services are incorporated quickly by providers who do not want the patient - their customer - looking for better services elsewhere. There is no government bureaucracy that determines and dictates additions to the benefit package, often a slow and grudging process. Providers recognize it is in their interest to keep customers happy - and healthy. The President has appropriately asked why people should not have the same type of health care benefits enjoyed by members of Congress and other federal employees. The FEHB program is a sound model, one that has stood the test of time.”

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OPM oversees the federal work force and provides the American public with up-to-date employment information. OPM also supports U.S. agencies with personnel services and policy leadership including staffing tools, guidance on labor-management relations and programs to improve work force performance.

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