The nitty-gritty of Open Season options

It's open season -- but what does that really mean for you?

It means the potential for savings, according to Senior Correspondent Mike Causey, who says, if you shop carefully, you could save between $1,000 - $2,000 a year in premiums and out of pocket costs.

Walton Francis is editor of Consumer Checkbook's Guide to Health Plans for Federal Employees and gave Causey a breakdown of some of the more important changes on this week's Your Turn.

Blue Cross, Blue Shield -- one of the more dominant plans in the Federal Employees Health Benefits Program (FEHBP) has increased its premiums, though Francis said they were not the only ones to do so.

"I don't want to just pick on Blue Cross Standard. There's other plans that are as pricey -- or pricier: the DIA High Option and the SAMBA High Option are in that category of very high premiums -- good benefits, but not such outstanding benefits that you wouldn't want to consider an alternative."

Since Blue Cross standard is the most popular, however, Francis chose that plan to compare and discuss on the show in terms of coverage for a family of three.

"We estimate that a family could save as much as $3,000 in some plans -- that's a couple of the consumer-driven plans -- Aetna and United. They could save $1,500 just sliding down to Blue Cross Basic. The benefits there are actually, in most categories, a little bit better in Blue Cross Basic and the premium is so much lower, you're going to save -- between the two -- over $1,500 on average."

Francis added that there are other prices to each choice -- some not having to do with money, "For example, Blue Cross Basic doesn't have an out-of-network benefit, whereas Blue Cross Standard does. To some people, that's very important."

Sticking with a preferred provider is generally the way to go, no matter what.

"The Kaiser Standard Option HMO [has] over $2,000 in savings for a family of three on average. That's a fair amount of money. . . . If you want a less drastic departure from some of the national plans, GEHA Standard {and} APWU offer very solid plans with good benefits and a lot of premium savings."

Both Causey and Francis said that though APWU stands for American Postal Workers Union, one doesn't have to be a postal worker to join.

Additionally, SAMBA -- the Special Agent Mutual Benefit Association -- used to be reserved only for those in the FBI. Francis said that is no longer the case.

"It's now open to everybody and it's one of the better buys. The Foreign Service Plan and the Association Plan . . . They're now open not just to their own agency people, but to essentially the entire foreign affairs and intelligence communities, respectively. So, there's a lot of choices out there and you shouldn't be put off by the name the plan may have or the implication. You do not have to join the union to join the plan."

According to the latest information, Francis said that, in the Family of 3 category, one can find big premium and out of pocket savings with the following HMO plans: Kaiser Standard, Kaiser High, Care First Blue Choice.

Similarly, on average, one can find really good savings with the following consumer-driven, high-deductible plans: Aetna, APWU, and United Healthcare.

Blue Cross Basic is rated number one in terms of national plans.

Retiree Information

If you have Medicare Part A only, or if you have Medicare A & B, Francis said there are best buys for you.

"They're not exactly the same [as above] because the situation's different. To start with the most fundamental point, the most popular plan by far for people with Medicare Parts A & B is Blue Cross Standard. It offers, as do almost all of the national plans, the deal that, if you have the combination -- A and B and the plan -- you pay nothing for doctors and nothing for hospitals. So you get a better benefit, but the price of that is you've got to pay the Part B premium, which is around $1,100 a year."

Francis said next year, a retired couple who have Blue Cross Standard and Medicare Parts A & B, the premium costs are going to be over $7,000, which means it might be time to shop around now.

"In that case, we rate GEHA Standard Option among the national plans as the best buy. APWU is the second best. SAMBA Standard Option and Blue Cross Basic comes in fourth [and] is very good. . . . If you feel frisky, you can save even more money by going to consumer-driven or high-deductible."

Overall, Francis said it is very important to research thoroughly to figure out what option is best for you.

He reminds everyone that the prices discussed are averages, and have not been tailored to the specific needs of anyone.

To listen to the entire program, click on the audio link at the top of the page.

For more Pay & Benefits news, visit Mike Causey's Federal Report page and sign up for Mike's daily email.