Federal Employee Program (FEP®) Standard Option Promotes Generic Prescriptions For 2009 – No Copay For First Four Mail Orders And Retail Coinsurance Is Reduced

Basic Option premium increase is single-digit, while FEP BlueVision® premiums are steady for the third year in a row

September 25, 2008

WASHINGTON – The Blue Cross and Blue Shield Government-wide Service Benefit Plan (Federal Employee Program or FEP®) will waive Standard Option members' first four mail order generic drug copays as part of their 2009 benefits package, the Blue Cross and Blue Shield Association (BCBSA) announced today.

To further encourage federal employees to use generic medications, all 2009 Standard Option member mail order generic copays, after the first four prescriptions, are unchanged from 2008.  Additionally, members will save 5 percent on coinsurance costs for generic drugs purchased from retail outlets as compared to last year.

According to Jena Estes, vice president of FEP, BCBSA, "These benefits will help FEP Standard Option members reap the cost-saving benefits of generic prescriptions.  Generic medications offer the equivalent effectiveness as brand-name prescriptions, but at a much lower cost."

Other key changes to both Standard and Basic Option benefits' packages for 2009 include an online fitness tracking program, WalkingWorks®, and an interactive health assessment tool, both part of the redesigned Web site www.fepblue.org.  In addition, the new FEP Online Provider Directory was added to the Web site in August.

The new health assessment tool will empower members to build a personal, private and secure health profile online, making it accessible from anywhere.  This tool can serve as a springboard for consumers' discussions with their doctor and other healthcare providers to ensure that their treatment plans are tailored to their specific health needs.

The new FEP Online Provider Directory provides members with easy access to doctor and provider information.  Members can more easily find quality data about physicians and hospitals as well as the latest designations for Blue Distinction Centers for Complex and Rare Cancers^SM, and Blue Distinction Center listings for cardiac care, bariatric surgery and transplants.

Estes said, "This year's new online tools, such as the FEP Online Provider Director, WalkingWorks, and the health assessment tool, will enable all members – from singles, families, and retirees – to better customize their healthcare profile to suit their needs, regardless of which FEP plan they choose."  Estes added that the new Web site design is more content driven and easier to navigate.

FEP BlueVision® Holds Premiums Steady For Third Year In A Row
The 2009 biweekly premiums for FEP BlueVision®, the two-year old, separate vision care product, remain nearly unchanged for both High and Standard Options.  In addition, an out-of-network benefit has been added to High Option.  There is no out-of-network benefit for Standard Option.

The FEP BlueVision® network consists of more than 27,000 ophthalmologists, optometrists, opticians, as well as national and regional retailers.  In-network coverage includes:  annual eye exams with no copays, new glasses or contact lenses every 12 or 24 months; elective allowance for contact lens; one-year warranty on frames and lenses; and discounts on laser eye surgery.

Standard And Basic Options Premiums Increase In 2009
Both Standard and Basic Options will incur premium increases in 2009.  Basic Option's employee out-of-pocket contribution will increase by 9 percent, or $3.53, for single coverage for a new biweekly total of $42.66.  Family coverage will also increase by 9 percent, or $8.25, for a new biweekly total of $99.91.

Standard Option employee single out-of-pocket premiums will increase by approximately 12.9 percent for singles, an increase of $8.03, to $70.17 biweekly.  The family coverage will increase by 13.4 percent, with out-of-pocket premiums increasing $19.44, to $164.58 biweekly.

"FEP continues to offer the largest provider networks and the most comprehensive benefits available to federal employees and retirees," said Estes.  "Federal employees and their families can continue to count on FEP for consistent, dependable benefits along with personal customer service, excellent flexibility and dependable quality."

Changes for both options go into effect on January 1, 2009.  Federal employees, retirees and their families will make their healthcare coverage decisions during the Federal Benefits Open Season, which runs from Monday, Nov. 10, 2008, through Monday, Dec. 8, 2008.

The Blue Cross and Blue Shield Government-wide Service Benefit Plan (Federal Employee Program or FEP®)  has been part of the Federal Employees Health Benefits Program (FEHBP) since its inception in 1960.  FEP covers roughly 4.8 million federal employees, retirees and their families out of the nearly 8 million people (contract holders as well as their dependents) who receive their benefits through FEHBP.  BCBSA works with the Office of Personnel Management to administer the Service Benefit Plan on behalf of the 39 independent Blue Cross and Blue Shield companies.