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NARFE Urges Careful Review of FEHB Plan Options Amid Rising Costs

Alexandria, Va. – In response to the Office of Personnel Management (OPM) announcing today that Federal Employees Health Benefits (FEHB) program premiums for America’s active and retired federal workers will increase by an average of 7.2% in 2023, NARFE National President Ken Thomas issued the following statement:

 “I have no doubt that federal retirees and employees will react to today’s announcement 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%–is even more worrisome. It may bring little comfort that these increases are comparable to premiums for plans from other large employers.

“But enrollees may attempt to find relief in alternative plan options. If your plan increase is exorbitant, now is the perfect time to comparison shop. One of the most valuable features of FEHB is its broad array of plan options. That’s why NARFE encourages all participants to thoroughly review the plans so they may select the one that best fits their needs. All federal employees and annuitants are encouraged to join NARFE’s upcoming Open Season webinars to help narrow their choices.

“For retirees, many plans already offer Medicare Part B premium reimbursement, and seven more will add this option for 2023. That may help annuitants looking for coverage that meets their needs and fits their budgets.”

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 from November 14 through December 12.
  • While the average increase is 7.2% overall, the federal government’s contribution in 2023 will increase by an average of 6.6% and the enrollee share will increase an average of 8.7%.
  • Annual average premium increases for previous years were 2.4% in 2022, 3.6% in 2021, 4% in 2020, 1.3% in 2019, 4.0% in 2018, 4.4% in 2017 and 6.4% in 2016.
  • For more details on coverage options, visit NARFE’s Federal Benefits Open Season Resources page.

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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 100 years, NARFE has been a trusted source of knowledge for the federal community, Capitol Hill, the executive branch and the media.

CONTACT:
Jenn Rafael
NARFE Director of Communications and Marketing
jrafael@narfe.org | (571) 483-1270