NARFE Urges Cost-Comparison When Choosing FEHB Plans    

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 5.8% in 2024, NARFE National President William Shackelford issued the following statement:

“Growth in health care costs typically outpaces inflation in the rest of the economy, and this year is no exception. While enrollees may find some relief that the 2024 increase of 5.8% is more modest than last year’s, which was the highest since 2011, the increasing costs are unlikely to be greeted with applause. The average increase in the enrollee share of premiums–7.7%–is down slightly, from 8.7%, but still higher than recent inflation. It’s important to note these increases are somewhat less than those expected for plans from other large employers.

“However, every employee or annuitant’s situation is different, and enrollees should be open to comparison shopping. 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, almost half of FEHB plans offer incentives to enroll in Medicare Part B via premium reimbursement or other incentives, such as pay, coinsurance or deductible waivers. That may help annuitants looking for coverage that meets their needs and fits their budgets.

“Retirees should also pay attention to the new and existing plans that will offer Medicare Advantage or Medicare Part D plans that automatically coordinate with their FEHB plan through an Employer Group Waiver Plan (EGWP). The EGWP option will allow retirees to take advantage of coverage enhancements such as a $35 per month cap on insulin products, drug coverage protections, and more.” 

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 13 through December 11, 2023.
• While the average increase is 5.8% overall, the federal government’s contribution in 2024 will increase by an average of 5.0%, and the enrollee share will increase an average of 7.7%.
• Annual average premium increases for previous years were 7.2% in 2023, 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.
• The Postal Service Health Benefits (PSHB) Program is a new, separate program within FEHB that will insure to eligible Postal Service employees, Postal Service annuitants, and their eligible family members starting on January 1, 2025. The PSHB Program coverage will replace FEHB Program coverage for these groups. Postal Service employees, annuitants, and eligible family members may continue to participate in the FEHB Program through December 31, 2024.

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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