2023 FEHB and FEDVIP Premiums Will Increase – but a 3% Drop for Medicare B

A hefty rise in FEHB (Federal Employee Health Benefits) premiums was announced earlier this month, but Medicare B premiums will see a slight decrease.

While next year’s total premium increase for FEHB plans will be an average of 7.2%, the portion that (non-postal) federal workers and retirees will pay pre-tax out of their paychecks (or pension checks) will go up an average of 8.7%. Here’s the average dollar increase that can be expected for the three types of coverage:

Type of FEHB Plan	Average cost increase bi-weekly (annual)
Self only	+$8.11 ($210.86/year)
Self+1	+$20.34 ($528.84/year)
Family Coverage	+$20.87 ($542.62/year)

The 2022 FEHB premiums were also increased, but not by as much. The total average increase for last year was 2.4% with the employee portion climbing an average of 3.8%.

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Ed Zurndorfer breaks down what feds need to know when it comes to FEHB and Medicare in our No-Cost Webinar:

REGISTER HERE

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Premiums for FEDVIP (Federal Employee Dental and Vision Insurance Program) plans are also expected to rise, but not nearly as much as FEHB, with each increasing at less than half a percent. The average dental plan premium will go up on average 0.21% and the will be an average premium spike of 0.41% in Vision plan premiums. Medicare B premiums, however, are expected to go down 3% in 2023. This is welcomed news for Medicare B participants after 2022 saw a premium increase of 14.77%. (Remember, some FEHB plans offer Medicare B reimbursements.)

FEHB Open Season

With FEHB premiums set to increase, now might be a good time to shop for a plan that better fits your budget and healthcare needs. It has been estimated that 60% of FEHB plan participants have a more cost-effective option available to them, and 30% of these people never switch their health insurance plan under FEHB. This year’s open season will be from November 14 to December 12^th and is the only time throughout the year that you can change your FEHB plan or enroll a flexible spending account. Make sure you’re prepared – attend our next FEHB and Medicare Webinar!

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Until Next Time,

The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers  and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **

2023 FEHB and FEDVIP Premiums