CBO Issues Cost Estimate for Ensuring FEDVIP and FLTCIP Coverage During Shutdowns Act
H.R. 2004 would prohibit plans that offer insurance through the Federal Employees Dental and Vision Insurance Program (FEDVIP) or the Federal Long Term Care Insurance Program (FLTCIP) from cancelling policies as a result of nonpayment during a government shutdown.
Under current law, individuals bear the full cost of premiums for dental, vision, and long term care coverage through payroll deductions; none of the costs are borne by the federal government. Therefore, although the premiums paid to insurers through federal payroll deduction would not occur during a government shutdown, enacting H.R. 2004 would not affect the federal budget.
H.R. 2004 would impose a private-sector mandate as defined in the Unfunded Mandates Reform Act (UMRA) by requiring insurance plans that offer coverage under FEDVIP and FLTCIP to continue covering federal employees during a shutdown. Although providers participate in FEDVIP and FLTCIP voluntarily, the bill would apply the duty to continue coverage to contracts that are already in effect, and affected entities would have to comply with the duty.
H.R. 2004 would establish a process for the affected insurers to receive unpaid premiums at the conclusion of the shutdown. Because CBO expects any shutdown would be of limited duration, CBO estimates the cost of the mandate--delayed premium payments and administrative expenses related to that delay--would fall well below the private-sector threshold established in UMRA (
H.R. 2004 contains no intergovernmental mandates as defined in UMRA.
The CBO staff contacts for this estimate are



American Property Casualty Insurance Association Issues Statement on SAFE Banking Act
Del. Norton Introduces Bill to Help Federal Employee Get Short-Term Disability Insurance
Advisor News
- Worker retirement confidence dips to lowest level in a decade
- What’s behind private equity investment in insurance brokerages
- Advisors get a win as NJ Senate passes independent contractor bill
- Why federal retirement benefits are more complex than advisors realize
- Why timing the market is still a retirement mistake and what to do instead
More Advisor NewsAnnuity News
- Best’s Special Report: U.S. Life/Annuity Industry Sees Bottom-Line Growth Despite 18% Decline in Total Income in First-Quarter 2026
- Globe Life Inc. (NYSE: GL) Records 52-Week High Thursday Morning
- Fortitude Re Completes $500 Million FABN Issuance
- Reframing retirement income for greater certainty
- Jackson Introduces Dow Jones Industrial Average Index Option, Flexible Premiums, Six-Year Rate Guarantee in Latest Registered Index-Linked Annuity Launch
More Annuity NewsHealth/Employee Benefits News
- Findings from Brown University Provides New Data on Managed Care (Low-Value Care Following Hospital and Private Equity Acquisition in Primary Care): Managed Care
- Reports from University of Chicago Medicine Advance Knowledge in HIV/AIDS (A Community Located Insurance Navigation Intervention to Link Sexual and Gender Minorities in Status Neutral Care: Results From the Navigating Insurance Coverage …): Immune System Diseases and Conditions – HIV/AIDS
- New Insurance Findings from Johns Hopkins University Outlined (Medicare coverage choice is not neutral: how policy design shapes beneficiary enrollment): Insurance
- Collinsville man, St. Louis woman charged in Illinois health fraud case
- Governor vetoes changes to health-care risk pool oversight
More Health/Employee Benefits NewsLife Insurance News
- Researchers from Georgia Institute of Technology Report on Findings in Insurance (Black Life Insurance Companies, Mortgages, and African American Homeownership Before 1964): Insurance
- How much money do Connecticut residents need to retire comfortably?
- Earl Dudley Jr. to Become Chief Human Resources Officer at Mutual of Omaha
- How accelerated underwriting is transforming life insurance
- OVER $107 MILLION IN LIFE INSURANCE BENEFITS LOCATED FOR TENNESSEANS IN 2025 THROUGH NAIC'S LIFE INSURANCE POLICY LOCATOR SERVICE
More Life Insurance News