OPM announced there will be an average premium increase of 7.7% for FEHB plans next year.
Premiums for FEHB plans will increase by an average of 7.7% in 2024, slightly less than the 8.7% average rise in health insurance costs seen in 2023. The government pays 75% of non-postal federal workers and retirees’ FEHB premium, and their portion of the payment will go up by an average of 5.8%. Factors that impact FEHB cost include, the rising cost of healthcare in general, inflation, population changes, and advancements in healthcare technology.
Get ready for FEHB open season and Medicare open enrollment with our no-cost webinar, featuring Ed Zurndorfer!
Here’s the average dollar increase that can be expected for the three types of coverage:
|Type of Plan||Average Cost Increase, Biweekly||Annual Increase|
Per a recent OPM announcement, premiums for FEDVIP (Federal Employee Dental and Vision Insurance Program) plans will be higher next year as well, but not by as much. Dental coverage will rise 1.4% while the cost of vision insurance will be higher by 1.1% on average. This is a higher cost increase than the 2023 premium hikes of 0.21% and 0.41%.
Notable FEHB Changes for 2024
Other significant changes coming to the FEHB program include a decrease in the total amount of plans available and additional healthcare items becoming eligible for coverage. With Humana no longer participating in FEHB next year, the number of carriers will decrease to 69 and the total number of plans will drop by 112 from 271 to 159.
Additionally, coverage for the following healthcare items will be “enhanced” in 2024 with FEHB plans either allowed to offer coverage for the first time or allowed to offer more care options involving:
- Anti-obesity medications
- Prenatal and Postnatal care
- Mental health and substance abuse treatment
- Assisted reproductive technology
- Gender-affirming care for transgender individuals
This year’s open season will run from November 13 to December 11 this year. If you were enrolled in a Humana plan, you will have to select a new plan within this time period. Make sure you’re as prepared as you can be by attending our next FEHB Webinars!
Until Next Time,
**Written by Benjamin Derge, Financial Planner, ChFEBC℠ 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 Benjamin Derge and not necessarily those of RJFS or Raymond James. Links are being provided for information purposes only. Expressions of opinion are as of this date and are subject to change without notice. Raymond James is not affiliated with and does not endorse, authorize, or sponsor any of the listed websites or their respective sponsors.