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Leading policy-makers and scholars explain how market forces, deregulation, and consumer choice can work to improve health care for all Americans.

Commentary

Lessons of Success: What Congress Can Learn from the Federal Employees Program
Robert E. Moffit, Ph.D., Heritage Foundation WebMemo #565, 9-14-04

Moffit suggests that the Federal Employees Health Benefits Plan (FEHBP) holds many lessons for policymakers seeking to reform Medicare and improve the nation's health care delivery system.

The FEHBP saw premium increases this year of only 7.9 percent on average, well below national trends. The program benefits from real consumer choice (members can choose among a wide variety of health care plans, including, in 2005, consumer driven plans), genuine competition (249 plans compete directly for consumer dollars) and light regulation (there is no standard benefits package and plans can offer any array of benefits to members).

Moffit hopes that Congress will look at FEHBP and see how "consumer choice, competition, and light and reasonable regulation can deliver high quality health plans, including consumer-driven options." With health care a prominent issue in the Presidential election, we hope the candidates take careful note of the principles Dr. Moffit recommends.



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