Plaster joins chorus calling for investigation over federal insurance premium hikes - Insurance News | InsuranceNewsNet

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August 10, 2016 Newswires
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Plaster joins chorus calling for investigation over federal insurance premium hikes

Maryland Gazette (MD)

Mark Plaster, the Republican candidate for Maryland's congressional seat in District 3, has called on Congressman John Sarbanes to support an investigation over scheduled insurance premium hikes that could cost federal employees an average of $111 more per month.

In a statement, Plaster called on Sarbanes, D-Baltimore, to join other voices in Congress - including Republican Congresswoman Barbara Comstock (R-Virginia) - in requesting hearings on the increases. Those increases came as the result of a seven-year contract awarded to John Hancock Life and Health Insurance Company by the Office of Personnel Management for long-term care insurance for federal employees.

"This programs affects over a quarter million federal employees, many of whom live in the Congressional District 3," Plaster wrote. "But did you hear any outrage from our congressman?"

The changes go into effect on Nov. 1 and will affect most enrollees. Increases on premiums vary widely and are dependant on the employee's option under the Federal Long-Term Care Insurance Program.

However, with some in the program expected to see premiums increase by as much as 126 percent, members of Congress have called for hearings and investigations into why the contract was awarded.

Last month, Comstock wrote a letter to members of the House Oversight and Government Reform Committee and its Government Operations subcommittee asking them, to further examine the matter.

In the letter, she wrote that some of the employees effected are on fixed incomes.

"This new comes as a shock to many of my constituents who are active and retired federal employees, as well as their dependents," she wrote. "They are unsurprisingly outraged at this sudden and dramatic spike, as they will now be faced with extremely difficult household budget decisions."

Sarbanes declined to comment on the matter through a spokesperson.

For the two District 3 candidates, it's an issue that also hits close to home in their district. The district includes portions of Anne Arundel, Montgomery and Howard counties, whose populations all include high percentages of government employees.

As the respective campaigns look to highlight key issues prior to November, Plaster faces an uphill battle against Sarbanes. The Democrat has held the seat since 2007 and has handily defeated his Republican challengers twice while running for re-election.

Credit: By Phil Davis - [email protected]

Caption: John Sarbanes, D-Baltimore, left, and Republican District 3 candidate Mark Plaster, who is challenging Sarbanes for his seat in the House of Representatives in the 2016 general election.; Chase Cook and Steve Ruark, staff

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