FEP Celebrates 50 Years of Excellence

Who knew that when the Blue Cross and Blue Shield Service Benefit Plan was established a half century ago that it would become the largest national account program in the world? July 1, 2010, marks the 50th anniversary milestone of outstanding service to government employees for the Service Benefit Plan.

A History of Increasing Protection for Government Workers

In 1947, the U.S. government made a decision to offer some form of health insurance to employees to attract and keep talented individuals in government service. Congress introduced the first health coverage legislation that year, but with a very basic, one-size-fits-all solution. Not until twelve years later did a second law pass creating the Federal Employees Health Benefit Plan (FEHBP), allowing federal employees their pick of health coverage plans. On July 1, 1960, 1.7 million federal workers and their families enrolled in the FEHBP, with a choice of 28 separate plans. That first year, the Service Benefit Plan covered over half of those enrolled, 940,000 government employees and their families, offering them the choice of two Blue plans: High Option and Low Option.

A Legacy of Successful Service

Today's healthcare market presents a completely different picture than it did fifty years ago, and the Service Benefit Plan has continuously evolved to meet the changing needs of our members. Low Option grew into what is now Standard Option . High Option retired when we introduced Basic Option in 2001. When Aetna chose to bow out of the FEHBP in the 1990s, the Service Benefit Plan became the only remaining government-wide plan. Government employees can now choose from more than 200 health plans, and more than nine million federal employees and retirees worldwide benefit from federal healthcare coverage under the FEHBP. The 2009 Open Season signaled our 25th consecutive year of enrollment growth for the Service Benefit Plan.

A Member-focused Approach

We work every day to improve what we offer our members—by providing meaningful solutions and delivering excellent service and value. Throughout our history, we have worked to strengthen our response to changing member needs and our benefit offerings to: 

• Keep premiums affordable and provide a mix of benefits that you can customize for the best fit. 
• Provide members and their doctors more and better medical information and health measurement tools. 
• Keep the lines of communication open with our members and make all transactions as easy as possible.

We get great feedback from members on our free services: annual physicals, preventive childcare, cancer screenings and immunizations, and maternity care. Member-support programs like Walking Works, nutrition counseling, and smoking cessation are helping members make better choices, feel healthier and enjoy a better quality of life.

Moving with Confidence into the Future

We have always advocated for reforms to bring costs under control for our members, and improve the level of care they receive. As we move forward into the next fifty years, we have made a pledge to continually raise the bar in demonstrating excellence and dedication on behalf of our members. Just as we were for those first enrollees in 1960, we want to keep your vote as first choice for health insurance bringing health security and support to federal employees, their families, and retirees for years to come.

June 2010. Written by Katherine Potter Thompson, Helix Associates and Paula Spurway, Blue Cross and Blue Shield Association.

Page last updated: December 13, 2010