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HRD-77-151 1 (1977-09-30)

handle is hein.gao/gaobaawcs0001 and id is 1 raw text is: 





03778 - (B27940241 tn  /ru42ff-

Reasons for Difference in Premium Rates of Kaiser Plans of
Northern and Southern California fcr the Federal Employees
Health Benefits Program. HRD-77-151; B-164562. September 30,
1977. released October 13, 1977. 2 pp. + 2 appendices (14 pp.).

Report to Rep. Gladys Noon Speliman, Chairman, House Committee
on Post Office and Civil Service: Ccmpensaticn and Employee
Benefits Subcommittee; by Robert F. Keller, Acting ComptrCller
General.

Issue Area: Health Programs (1200); Health Prcgrams:
    Reimbursement Pclicies and Utilization Ccntrols (1208).
Contact: Human Resources Div.
Budget Puaction: Health: Health Care Services (551).
Organization Concerned: Civil Service Commission;
    Kaiser-Permanente Medical Care _program.
Congressional Relevance: House Comaittee on Post Office and
    Civil Service: Compensation and Employee Benefits
    Subcommittee.
Authority: Federal Employees Health Benefits Act of 1959 (5
    U.S.C. 8901). 5 U.S.C. 8906. H.R. 3795 (94th Cong.).

         The Kaiser Foundation Health Plan for Southern
California is cne of six plans whose rates are used to determine
the Government's contribution to the Federal Employees Health
Benefits program. Under proposed legislaticn, the Southern
California plan could be one of two plans whose premium rates
would be used to compute tne Goverrment's contribution. The
Kaiser Foundation's 1976 biweekly family premium rate was $7.87
higher for their Southern California plan than for their
Northern California plan. Findings/Conclusions: Discussions
with Kaiser officials and a review of the assusptions and
methodology used in arriving at the premium rates for the two
plans indicated that the higher rate for the Southern California
plan could be attributed primarily to the follcwing factors:
higher pro;?erty costs, greater benefits, higher inpatient
hospital use, higher cost of physician services and aonphysician
payroll, higher prescription drug use, and different composition
of enrolled families. (Author/SC)

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