Federal Health Benefits Program

Stronger Controls Needed to Reduce Administrative Costs Gao ID: T-GGD-92-20 March 11, 1992

GAO testified that the administration costs of the fee-for-service portion of the Federal Employees Health Benefits Program are higher than the costs for other large health benefits programs, mainly because the carriers are not given enough incentive to cut their operational expenses. GAO estimates that potential annual savings could range from at least $35 million in the short term, if the Office of Personnel Management improves its controls over the operational expenses of fee-for-service plans, to as much as $200 million through legislative reforms that would provide a more uniform benefits structure and change the way contractors are chosen and paid.



The Justia Government Accountability Office site republishes public reports retrieved from the U.S. GAO These reports should not be considered official, and do not necessarily reflect the views of Justia.