Open Season Exchange 2023: GEHA’s Mandy Cotter on finding an option that’s not one-size-fits-all

When thinking about making 2024 selections during Open Season, Government Employees Health Association Account Manager Mandy Cotter recommended enrollees in the Federal Employees Health Benefits Program leave no stone unturned.

GEHA, a long-time federal health carrier, serves 2 million members nationwide and offers a wide range of plans to try to accommodate the often diverse health care needs of federal employees, retirees and their families.

“We know one size doesn’t fit all, so that’s why we offer five unique medical plans really designed to meet you where you are in your life,” Cotter said during Federal News Network’s 2024 Open Season Exchange.

These options include plans that are tailored, for instance, to those looking for a low deductible, rewards for healthy living, coordination with Medicare or extended prescription coverage, Cotter said.

GEHA’s fastest-growing plan though is its high-deductible health plan (HDHP). Participation for this plan option has risen 250% in just the last five years.

Dispelling myths about high-deductible health plans

Cotter suspects the HDHP option is popular because of the benefits this type of plan offers. For one, it provides greater control of where a member’s health care dollars go through the use of a health savings account.

“Your HSA is a tax-free savings account that you can use to help pay for medical expenses,” she said. “Interest gained on your HSA account is 100% tax-free.¹ GEHA also contributes money to your HSA, and you can add your own money to your HSA — kind of like what you do for your 401K. You can watch your savings grow over time. You never lose it.”

There are also several myths about HDHPs that FEHB participants should reconsider, Cotter said. For example, she said, many enrollees believe the high deductibles are unreasonable.

“But all high-deductible health plans in the FEHB contribute a portion of the federal employees’ premiums to their HSA, giving them a lower net deductible,” Cotter said. “Another myth about a high-deductible health plan is that people think not all benefits are covered. But they will typically find the same kind of benefits are covered in a high-deductible health plan as most any other plan.”

New options becoming available for federal retirees

Cotter suspects the HDHP option is popular because of the benefits this type of plan offers. For one, it provides greater control of where a member’s health care dollars go through the use of a health savings account.

“Your HSA is a tax-free savings account that you can use to help pay for medical expenses,” she said. “Interest gained on your HSA account is 100% tax-free.¹ GEHA also contributes money to your HSA, and you can add your own money to your HSA — kind of like what you do for your 401K. You can watch your savings grow over time. You never lose it.”

There are also several myths about HDHPs that FEHB participants should reconsider, Cotter said. For example, she said, many enrollees believe the high deductibles are unreasonable.

“But all high-deductible health plans in the FEHB contribute a portion of the federal employees’ premiums to their HSA, giving them a lower net deductible,” Cotter said. “Another myth about a high-deductible health plan is that people think not all benefits are covered. But they will typically find the same kind of benefits are covered in a high-deductible health plan as most any other plan.”

To qualify for the plan, FEHB participants must be GEHA standard or high members.²

To discover more insights and advice shared during the 2024 Open Season Exchange, visit the event page.

Disclaimers:

¹ Investment products are not FDIC insured, are not a deposit or other obligation or guaranteed by HSA Bank and are subject to investment risks. The information provided is for informational purposes only. It should not be considered legal or financial advice. Consult with a professional to determine what may be best for your individual needs. See IRS Publications 502 and 969 for more information regarding qualified medical expenses, health savings accounts and health reimbursement arrangements.

² You must remain a GEHA High/Standard FEHB Health Plan member in the FEHB program if you elect to enroll in the GEHA Medicare Advantage Plan. Plans are offered by GEHA and insured through UnitedHealthcare Insurance Company or one of its affiliated companies, a Medicare Advantage organization with a Medicare contract. Enrollment in the plan depends on the plan’s contract renewal with Medicare. Benefits, features and/or devices vary by plan/area. Limitations and exclusions apply.

This is a brief description of the features of Government Employees Health Association Inc.’s medical plans. Before making a final decision, please read the GEHA Federal brochures which are available at geha.com/PlanBrochure. All benefits are subject to the definitions, limitations and exclusions set forth in the federal brochures.

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