The Following Statements Are About the Federal Employees Health Benefits

The following statements are about the Federal Employees Health Benefits Program (FEHBP) , which is administered by the Office of Personnel Management (OPM) . Three of the statements are true and one statement is false. Select the answer choice that contains the FALSE statement.

A) For every plan in the FEHBP, OPM annually determines the lowest premium that is actuarially sound and then negotiates with each plan to establish that premium rate.
B) Once a health plan has submitted its rate proposals for a contract year to the OPM, it cannot adjust its premium rate for any reason.
C) To cover its administrative costs, OPM sets aside 1% of all FEHBP premiums.
D) Each spring, OPM sends all plan providers its call letter, a document that specifies the kinds of benefits that must be available to plan participants and cost goals and procedural changes that the plans need to adopt.