Feds Health Insurance Premiums to Increase 3.8 Percent
The Office of Personnel Management (OPM) announced on September 29, 2021, that federal employees will pay 3.8 percent more to healthcare premiums next year as a result of specialty drugs, treatments for chronic illnesses, and the COVID-19 pandemic.
The government’s share of Federal Employees Health Benefits Program (FEHBP) premiums will increase by an average of 1.9 percent next year, bringing the overall increase in premiums to 2.4 percent. However, this announcement marks the second straight year of declining cost increases. In 2021, employees saw an average increase of 4.9 percent, but in 2019, the increase was only 1.9 percent.
OPM also announced the Federal Employees Dental and Vision Insurance Program (FEDVIP) next year the average premium increase for dental plans will be 0.81 percent, while vision plan premiums will increase by an average of 0.95 percent.
“The global pandemic underscores the responsibility an employer has to provide their workforce with quality, affordable and dependable health care options,” stated Kiran Ahuja, Director of OPM, “As the largest employer in the United States, the federal government is proud to lead by example with a wide choice of health insurance plans from the FEHB and FEDVIP that deliver the quality coverage every employee deserves.”
The press release further stressed those enrolled in flexible spending accounts must reenroll during open season to continue utilizing the program. All unused Federal Flexible Spending Account Program (FSAFEDS) will roll over into 2022, a recent development due to the COVID-19 pandemic.
The FEHBP’s annual open season period, in which federal employees can choose from a variety of insurance carriers and coverage plans, will run between November 8, and December 13, 2021. BENEFEDS will also host a virtual open season benefits fair during this period to address concerns and review premium details.
More information on FEHBP plan options and OPM’s plan comparison tool can be found here.
