What is OBRA (Omnibus Budget Reconciliation Act)?
A. OBRA is a Federal Law that applies to all retirees enrolled in a Federal Employees Health Benefit (FEHB) plan, who are age 65 and older, and who are not entitled to Part A Medicare coverage or who do not elect to enroll in Medicare Part B coverage. The OBRA law requires all FEHB plans to base claim payment for covered services on an amount equivalent to the amount Medicare would have allowed if the patient was enrolled in Medicare.
