Federal Employees Slated to Pay 8.7% More in Healthcare Premiums
The Office of Personnel Management (OPM) recently released details concerning the upcoming open season for the Federal Employees Health Benefits (FEHB) Program and the Federal Employees Dental and Vision Insurance Program (FEDVIP). Open season will run from Monday, November 14 to Monday, December 12, 2022, and participants are likely to see a significant increase in their health premium costs in comparison to previous years.
On September 30, OPM announced that the average increase for the 2023 FEHB premiums for current non-postal federal employees and federal retirees will be 7.2 percent. However, the overall the FEHB enrollees’ share of the health premiums will be considerably higher with an average increase of 8.7 percent. The overall average premium for dental plans will increase by 0.21 percent under FEDVIP, while the overall average premium for vision plans will decrease by 0.41 percent.
On a call with stakeholders, agency officials pointed to the COVID-19 delta variant among the reasons for the rise in premiums as the previous year's coverage didn't account for the consecutive Coronavirus issues and the increase in enrollees using their elective benefits. The cost of prescription drugs is also contributing to the increase, according to OPM.
A total of 271 plans will be available in 2023, four fewer than last year; however, some options have regional restrictions, so not all participants have access to them. OPM has added an additional FEHBP carrier–Indiana University Health Plan–which will offer one plan.
Enrollees will have access to expanded coverage and services related to COVID-19, including over-the-counter tests, vaccine boosters and therapeutics. The availability of telehealth services, including virtual mental health services, will be expanded in 2023 at a low or no cost to participants. To address inequalities in maternal health, several plan options now cover enrollee’s prenatal and postpartum care, including childbirth classes, group care, home visits and care for high-risk pregnancies.
The National Active and Retired Federal Employees (NARFE) are among stakeholders to react to the details of the upcoming open season with disappointment and concern.
“This will be the highest increase in FEHB premiums since 2011, and it comes as enrollees must deal with high inflation across the board. The average increase in the enrollee share of premiums—8.7 percent—is even more worrisome. It may bring little comfort that these increases are comparable to premiums for plans from other large employers,” said Ken Thomas, NARFE’s National President.
There is additional information concerning FEHBP and FEVIP coverage available on OPM's website. FEHBP participants will soon be able to compare different plan options using the plan comparison tool. NARFE is hosting upcoming open season webinars to help enrollees narrow their choices.