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FEHP Disparity Index

An actuarial benchmark of health coverage for AI/AN
that is equivalent to benefits in the Federal Employees Health Plan

The American Indian and Alaska Native population has long experienced a disproportionately high level of health problems compared to other Americans. The lingering health status inequities are troublesome and prompt an important question. What would it cost to provide equitable health care services to Indian people? To answer that question, a workgroup of tribal and Indian health leaders developed a pricing model that uses the Federal Employees Health Plan (FEHP) as the primary benchmark. Results from the model are posted here to facilitate consultation with Indian tribes. The Indian Health Service allocates the Indian Health Care Improvement Fund to tribes using results from the model.

Indian Health Care Improvement Fund

The IHCIF formula is applied for FY 2003 using the same data used in the FY 2002 allocation. The threshold to qualify for IHCIF funds remains the same; scores of less than 60% on the Federal Disparity Index (FDI). Based on guidance and clarification from the Congress in 2003, deficiencies in the lowest bracket--FDI scores of less than 40%--are given more emphasis. As a result, 57 units in the lowest bracket (<40% FDI scores) receive 70% of the IHCIF and 117 units in the next lowest bracket (40%-60% FDI scores) receive 30% of the fund. The $26 million of additional funds in 2003 begin to reduce disparities for the most deficient units, but are extremely insufficient for the $1.8 billion system-wide deficiency identified by the FDI methodology.
	FY 2003 ALLOCATIONS	UPDATED
	1. 2003 IHCIF Distribution by Area 1 page summary of IHCIF allocations by IHS Areas	March 27, 2003
	2. 2003 IHCIF Distribution by Operating Unit Listing of IHCIF allocations to all operating units	March 27, 2003
	3. Guidance for FY 2002 IHCIF 2 page guidance for Area adjustments and use of IHCIF funds	March 27, 2003
	4. More Explanation Supplemental explanation and Qs and As, about 2003	March 27, 2003
	2003 IHCIF distribution for Individual Areas Aberdeen Area Alaska Area Albuquerque Area Bemidji Area Billings Area California Area Nashville Area Navajo Area Oklahoma Area Phoenix Area Portland Area Tucson Area	March 27, 2003

	ARCHIVES OF OLDER MATERIALS
	FY 2002 IHCIF ARCHIVES Links to older documents originally posted on this page	May 9, 2002
	LNF Primer Explanation of the Methodology	January, 2001
	Executive Summary of LNF Study	December, 1999
	FY 2000 LNF 2000 ARCHIVES Links to older documents originally posted on this page
	FY 1999 LNF 1999 ARCHIVES Links to older documents originally posted on this page

FDI website last updated on March 27, 2003.
Send questions and comments to Cliff Wiggins cwiggins@hqe.ihs.gov

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This file last modified: Friday March 28, 2003 2:52 PM

An actuarial benchmark of health coverage for AI/AN that is equivalent to benefits in the Federal Employees Health Plan

An actuarial benchmark of health coverage for AI/AN
that is equivalent to benefits in the Federal Employees Health Plan