Healthcare Premiums Rising for Federal Employees in 2024: OPM

Healthcare costs will rise an average of 7.7 percent in 2024 for federal employees and retirees enrolled in the Federal Employees Health Benefits (FEHB) program.

While that is a substantial increase for enrollees, it is less than the 8.7 percent average increase for 2023.

The government’s share of FEHB premiums will increase an average of five percent, bringing the total increase to 5.8 percent.

That is according to the Office of Personnel Management (OPM), which published a full-list of 2024 premiums on its website ahead of open-enrollment season, which runs from November 13 to December 11.

Federal workers enrolled in “self-only” plans will pay about $8.05 more per biweekly pay period, while federal workers in “self-plus one” will pay an average of $16.73 more. Federal employees on family plans will pay an average of $21.16 more per pay period starting in January 2024.

The government shares in the cost, with employees contributing about 25% of the total premium.

Meanwhile, average premiums for dental plans under the Federal Employees Dental and Vision Insurance Program will increase by 1.4 percent, while premiums for vision coverage will increase by an average of 1.1 percent.

Fewer Plan Choices, Expanded Options

Benefits and rates for FEHB are negotiated every year, as OPM evaluates the program against inflation, population changes, and changes in healthcare and benefits technology. OPM insists the premium increase aligns with the commercial market.

For 2024, federal employees will have fewer options as Humana is exiting the FEHB plans.

For 2024, 69 carriers will offer a total of 159 plan choices, down from 271 in 2023.

However, there are some enhanced benefits for the 2024 plan including expanded access to:

·         FDA-approved anti-obesity medication.

·         Prenatal and postpartum care including childbirth classes, home care, and care management for high-risk pregnancies.

·         Mental health and substance abuse treatment, including telehealth options.

·         Assisted reproductive technology (ART) including artificial insemination and various reproductive drugs.

·         Gender affirming care for transgender individuals.

The premium announcement did not sit well with federal labor leaders.

“Federal employees, like all Americans, are constantly bombarded by the rising cost of health insurance, but today’s announcement is especially difficult to bear on the eve of a potentially catastrophic government shutdown,” National Treasury Employees Union (NTEU) president Doreen Greenwald said in a statement.