As the United States marks its 250th anniversary, WTOP presents “250 Years of America,” a multipart series examining the innovations, breakthroughs and pivotal moments that have shaped the nation since 1776.
Blue Cross and Blue Shield Federal Employee Program is proud to partner with WTOP to bring you this series.
In the 1950s, lawmakers in Washington, D.C. realized the federal government was in trouble. They were losing the best and the brightest to the private sector.
The reason was simple: private companies were offering health insurance to engineers, scientists and skilled workers and the government wasn’t.
Federal unions, like the National Federation of Federal Employees and the American Federation of Government Employees, had been pushing for health insurance coverage for their members since the 1940s.
Between 1954 and 1959, the House and Senate Post Office and Civil Service Committees held a series of hearings to study the issue.
In the mid-1950s, a five-day hospital stay could run you $100 to $160 out of pocket.
That amount may not sound a lot now, but back then, the average man earned $3,400 a year, while women made $1,110, meaning that a five-day hospital stay was basically a month’s pay. So if you didn’t have insurance, one bad break or illness could wipe you out financially.
President Dwight D. Eisenhower took notice. His administration publicly supported creating a federal health insurance program as early as 1954. During a special message to Congress on the Federal Civil Service, he called for a “sound and modern program of health benefits.”
This focus on the well-being of federal workers was deeply personal for the President. As a former five-star general who commanded Allied forces in World War II, Eisenhower spent his military career watching over his men and ensuring they were protected.
Entering the White House, he brought that same sense of duty to the civilian ranks, believing the government owed its workers basic security. In the middle of the Cold War, he believed the strength of the federal workforce was a matter of national security.
It would take half a decade before two lawmakers in Congress took the lead on this issue and made it happen.
Rep. John Lesinski Jr. of Michigan and South Carolina Sen. Olin Johnston helped design the model of multiple competing private plans — which would become the backbone of the Federal Employees Health Benefits Program.
Congress passed the bill in 1959 and on July 1, 1960, for the first time in our country’s history, federal workers finally had healthcare benefits.
Those civil servants delivered our mail, worked to cure diseases and helped plant our flag on the moon.
According to the Office of Personnel Management (OPM), that moment marked the official start of the FEHB Program — now the largest employer-sponsored health benefits program in the country, covering more than 8 million people.
When we honor our country’s 250th birthday, we also think of those who work to keep it going, knowing they can work harder without the constant worry of not having insurance or facing medical debt, thanks in part to a Republican president’s plea and two Democrats on Capitol Hill.
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