U.S. Office of Personnel Management - Ensuring the Federal Government has an effective civilian workforce

FOR IMMEDIATE RELEASE September 23, 2002

Contact: Michael Orenstein (202) 606-2402

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OPM Director Addresses Federal Retirees' Convention in North Carolina; Announces Blue Cross to Remain in the FEHB Program

 

Washington, D.C. -- Kay Coles James, Director of the U.S. Office of Personnel Management, today told an audience of federal retirees that she saw among them "the faces of Patriots" who came rushing to America's aid following the terrorist attacks last year.

James' comments were made to nearly 2,000 retired government workers during the 27^th National Convention of the National Association of Retired Federal Employees (NARFE) in Greensboro, North Carolina.

Following last year's terrorist attacks, the Bush Administration received 17,000 resumes from retired federal employees who asked to return to work. James waived economic penalties for these returning "warriors" because she said the government needed their "wisdom and knowledge and expertise to fill immediate vacancies in areas like health services and law enforcement."

The idea that so many retirees would express an interest in returning to work was not surprising because James said they were "cut from the same stock" as the "countless public servants" who came to work on September 12, 2001, in a display of a "million acts of quiet defiance."

As an example of courage, James cited Washington's postal employees for their determination to keep delivering mail in spite of the anthrax threats.

James also took the opportunity to thank OPM career staff efforts and their achievements to contain premium increases in the Federal Employees Health Benefits Program, which covers nearly nine million people, including federal retirees and their dependents. The audience cheered Director James following her announcement that Blue Cross and Blue Shield would continue in the FEHB Program next year following her action to waive all carriers from "burdensome and unnecessary" cost accounting standards. James assured the NARFE audience that OPM would maintain high standards through alternative means.

James noted that the 11.1 percent average increase in the FEHB Program in 2003 falls well short of other large insurance programs, including the California Public Employees Retirement System (CalPERS) which will be hit with a 25 percent increase. She also offered an innovative APWU Consumer-Driven Option, which she approved for the FEHB Program next year, "to help us figure out a way to hold down health-care costs."

To further contain health care costs and enhance the overall experience for enrollees, OPM has devised a four-point strategy that includes:

• Director James meeting with OPM's negotiating team to encourage tough negotiations with carriers on behalf of FEHB enrollees
• challenging health carriers to contain costs and maintain benefits
• performing an independent audit to look at the cost of all types of mandates on health care
• close collaboration with OPM's Inspector General to end fraud and waste in the program

Other programs James discussed were the Bush Administration's e-Government initiative to assist retirees in their business transactions with OPM and the Federal Long Term Care Insurance Program, supported by NARFE, that will save tens-of-thousands of federal retirees from liquidating their assets to gain nursing home care.

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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.