FEHB Premium Increase for 2020 Disappointing for America’s Active and Retired Federal Employees
Alexandria, Va. – In response to the Office of Personnel Management (OPM) announcing today that the average Federal Employees Health Benefits (FEHB) Program premiums for America’s active and retired federal workers will increase by an average 4.0 percent in 2020 – with the share paid by federal civil servants increasing by an average of 5.6 percent – NARFE National President Ken Thomas issued the following statement:
“With the cost of health care services rising in general, and federal employees on track to receive only a modest pay raise in 2020, a premium increase of this size comes as unwelcome news. Undoubtedly, the 5.6 percent average increase for enrollees will negatively affect the take-home pay of active federal employees and the families they support. It’s even worse for retirees whose purchasing power and quality of life are already diminished from increases in the general cost of living.
“While the modest increase for next year is disappointing, it’s important to remember that last year’s average FEHB premium increase was historically low. Additionally, FEHB enrollees have tremendous flexibility given the variety and number of health plans offered which connects them with renowned medical professionals, services and programs resulting in exceptional quality of care. NARFE encourages all participants to thoroughly review the plans to select the one that best fits their needs.
“Each year, employees of OPM’s Health Care and Insurance Division work hard to negotiate affordable benefits and rates, and I thank them for their dedication and service to the federal community.”
Background:
• Open Season, the annual period during which eligible federal employees, retirees and survivors can make changes to their health benefits coverage for the following year takes place November 11-December 9, 2019.
• Overall, the federal government’s contribution in 2020 will increase by an average of 3.2 percent and the enrollee share will increase an average of 5.6 percent.
• Annual average premium increases for previous years were 1.3 percent in 2019, 4.0 percent in 2018, 4.4 percent in 2017 and 6.4 percent in 2016.
# # #
As the only organization solely dedicated to the general welfare of all federal workers and retirees, NARFE delivers valuable guidance, timely resources and powerful advocacy. For nearly a century, NARFE has been a trusted source of knowledge for the federal community, Capitol Hill, the executive branch and the media.
Related Posts
OPM Finalizes Rule to Protect Civil Servants from Schedule F Reemergence
The Office of Personnel Management (OPM) has officially finalized a rule aimed at protecting career civil servants from the potential reemergence of the Schedule F policy, an initiative from the previous administration that sought to convert most federal employees to at-will workers. Published in the Federal Register on April 4, 2024, this regulation solidifies protections for 2.2 million federal employees, making it challenging for any future administration to reintroduce Schedule F-like policies.
House Panel Advances Bill to Combat FEHB Fraud
The FEHB Protection Act, H.R. 7868, was marked up by the House Committee on Oversight and Accountability on April 10, and then subsequently passed the same day. The bill, and its counterpart in the Senate, S.4035, is aimed at combating fraud in the largest employer- sponsored health insurance program in the United States, the Federal Employees Health Benefits Program (FEHBP). The bill would require federal agencies to verify that an employee is eligible to add a family member to their FEHB health coverage plan.
WEP/GPO Hearing Marks Continued Progress on Priority Advocacy Goal
NARFE and its allies continue to make considerable progress in our ongoing efforts to repeal the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).