The Federal Employees Health Benefits Plan will offer more than three million federal employees, retirees and their families new high-deductible health plans that include tax-free health savings accounts, the Office of Personnel Management announced Wednesday, the New York Times reports (Freudenheim, New York Times, 9/16). Under the new Medicare law, HSAs, which allow individuals to save funds tax-free for future medical expenses, are available to members of health plans that have a deductible higher than $1,000 for individuals and $2,000 for families. Employees, employers or both can contribute as much as a combined $2,600 for individuals and $5,150 for families for HSAs each year (Kaiser Daily Health Policy Report, 9/9). The plans will be offered to federal employees in 32 states and the District of Columbia by Aetna, with contributions of $1,500 for individuals and $2,500 for families made to the HSAs each year. Under the plans, members will not have to pay for preventative care from physicians in the Aetna network. Seventeen other health insurers -- such as the Government Employees Hospital Association, the Mail Handlers Benefit Plan and Coventry Health Care -- also will offer the plans for federal employees. Federal retirees who qualify for Medicare cannot enroll in the plans. OPM made the announcement after the House on Wednesday voted 221-183 to reject a bill, sponsored by Rep. James Moran (D-Va.), that would have prohibited HSAs for federal employees. The National Association of Retired Federal Employees, the American Federation of Government Employees and the National Treasury Employees supported the legislation.

Reaction
OPM Director Kay Coles James said that the new high-deductible health plans will provide federal employees with more control over their health care. However, according to federal employee unions, many Democrats and some health policy experts, the plans likely will attract healthier individuals, which could lead to higher costs for traditional health plans left to cover sicker individuals. AARP Policy Director John Rother said that the plans are a "potential threat to the affordability of more traditional plans" for federal employees (New York Times, 9/16).