Federal employees enrolled in the Federal Employees Health Benefits (FEHB) Program are expected to face double-digit premium increases for the third straight year, with at least one plan projected to more than double in cost, according to GovExec.
Key Facts
- Third consecutive double-digit increase: FEHB enrollees are expected to see premiums climb by double digits again next year, GovExec reports.
- Wide swings by plan: Cost changes are not uniform. Some plans face far larger increases than others.
- At least one plan to more than double: GovExec reports that one plan's premiums are projected to more than double.
- Open Season is the decision window: Enrollees can change plans during the annual FEHB Open Season, which typically runs from the second Monday of November to the second Monday of December.
- Comparison matters more this year: The size of the gaps between plans makes side-by-side comparison essential, according to the report.
What It Means For You
If you're enrolled in FEHB, don't assume your current plan is still your best option. Premium changes this large can shift the cost-benefit math, even if your coverage stays the same.
Before Open Season ends:
- Check your plan's new premium. Compare your biweekly or monthly cost against what you pay now. Because increases vary widely, your plan could rise far more or less than the overall trend.
- Look beyond premiums. Deductibles, copays, out-of-pocket maximums, and prescription coverage all affect what you actually spend in a year.
- Compare multiple plans. A plan with a lower premium may cost more once you factor in how often you use care. A higher-premium plan may save money for frequent users.
- Review your household's needs. Expected procedures, ongoing prescriptions, and provider networks should all factor into your choice.
- Consider self-only versus family coverage. If your household has changed, your enrollment type may need updating.
Retirees enrolled in FEHB are also affected, since they pay premiums under the same plan structure. Annuitants should review their options during the same window.
For help weighing plan features against cost, see the FEHB value guide.
Context
Premium growth in FEHB has outpaced typical pay adjustments for federal workers in recent years, putting more pressure on take-home pay. A third straight year of double-digit increases adds to that strain and raises the stakes for Open Season decisions.
Enrollees should consult official plan brochures and premium tables from the Office of Personnel Management (OPM) for exact figures before making changes. Changes made during Open Season generally take effect at the start of the next plan year.
Source: GovExec — Pay & Benefits