Federal Diary: OPM role in a reformed health-care system gets mixed reviews

Like a backup singer finally getting the spotlight, the Office of Personnel Management is moving to center stage in the debate over repairing the nation's health insurance system.

OPM is an agency that only federal employees and their kin have reason to know. One thing it does, to mixed reviews, is administer health insurance programs for government workers. Almost 9 million staffers, retirees, their families and survivors have employer-sponsored health insurance through private companies that participate in the Federal Employees Health Benefits Program.

Among those millions are members of Congress, some of whom think OPM also could run a health insurance program for certain members of the public. President Obama likes the idea, which just may have enough support in the Senate to pass legislation that would significantly expand health coverage for Americans.

Under the still-vague proposal, OPM would oversee national insurance policies that would be offered through newly created health exchanges in each state. OPM does something similar now with more than 200 firms that participate in the FEHBP nationally. Depending on their locality, federal workers can choose from about two dozen companies serving their area.

So, OPM does have experience in this area. "They have a good record to build on," said John Palguta, the vice president for policy at the Partnership for Public Service, a good-governance group.

But the proposal could mean a dramatic change for an agency that is used to a backstage role in Washington's political dramas. Certainly, it would need a significant increase in money, staff and power.

That would be the easy part. Congress presumably, though not assuredly, would supply the tools needed for the agency to carry out any new duties it was assigned. But would those new duties change the character of the agency and affect its primary mission of serving federal employees? Those are not the kinds of questions easily dealt with in legislation.

The potential new role for OPM is part of a larger package that Obama said would result in "a creative new framework that I believe will help pave the way for . . . a historic achievement on behalf of the American people.''

But what does it mean for those Americans who work for the government? Rep. Gerald E. Connolly (D-Va.) said he's "leery and wary" about that. He's not alone.

Rep. Stephen F. Lynch (D-Mass.), chairman of the House federal workforce subcommittee, is troubled by the Senate's plan. He fears that another area of responsibility, outside of OPM's comfort zone, could detract from its focus on making the federal workplace a better place.

"This new mission to serve a large and needy segment of the U.S. population is likely to eclipse everything that OPM is doing now for federal employees," he said.

Others echo that concern.