FOR IMMEDIATE RELEASE March 6, 2002

Contact: Edmund Byrnes (202) 606-2402

---

OPM Director Challenges FEHB Carriers
to Contain Costs, Maintain Quality

Washington, DC - The Director of the US Office of Personnel Management, Kay Coles James, spoke today before an audience of health care providers attending the Federal Employees Health Benefits Program Carrier Conference.

During her speech, she thanked the carriers for their commitment to providing federal employees with the finest health care possible, and she stressed the importance of having a strong health care system.

"Your service is important to the 9 million federal employees, retirees, and their families for whom you provide access to affordable health care," said James. "You give parents peace of mind. Your benefits pay for the tests that detect illnesses early, when they can be treated and even cured...provide medicine to ease pain and suffering...save lives through surgery. You make a real difference in people's lives every single day."

Director James put the carriers on notice to expect "very, very tough negotiations from OPM this year." She challenged those in attendance to contain costs, maintain quality and keep the federal government's program a model of consumer choice and on the cutting edge of employer-provided health benefits. James went on to remind the carriers of President Bush's principles for health care, saying that "if your principles are consistent with the President's vision - patient-centered health care, choice and quality - you will find OPM very receptive."

The theme of the conference was "FEHB: Past, Present, and Future," and it took an historical look at the program and a glimpse of what to expect in the future. It also addressed program-wide issues, including those of special interest to fee-for-service plans and HMOs.

- END -

OPM oversees the federal work force and provides the American public with up-to-date employment information. OPM also supports U.S. agencies with personnel services and policy leadership including staffing tools, guidance on labor-management relations and programs to improve work force performance.