OPM Calls for Shift to Wellness, Preventive Care to Cut Federal Health Costs

Key Points:

• The Trump administration's Office of Personnel Management (OPM) is directing federal health insurance carriers to prioritize prevention, wellness, and cost-cutting innovations in their 2027 plan offerings for Federal Employees Health Benefits (FEHB) and Postal Service Health Benefits (PSHB) programs.
• The initiative aims to improve long-term health outcomes and affordability following premium increases of over 11% in 2026, with a focus on non-pharmaceutical interventions, digital therapeutics, and reducing low-value services.
• Vaccine incentives previously offered to families have been discontinued, though FEHB will continue covering all recommended vaccines while emphasizing informed awareness of potential risks.
• OPM is also seeking access to detailed medical claims and provider data from insurers without removing identifying information, intending to enhance plan competitiveness and quality, though privacy experts have raised concerns about the proposal's vagueness.
• Federal benefits experts note that while the changes may not drastically alter coverage, they reflect a broader trend toward alternative treatments and addressing underlying health causes rather than just symptoms.