Much More Plan Switching Expected

OPM meanwhile projected that the new option will cause far more enrollment changes in this year”s open season than normal. It said that typically, only 6 percent of enrollees change their enrollment–8 percent of active employees and 4 percent of retirees–but that 80 percent of annuitants and 33 percent of employees currently with family coverage will make the switch. That”s out of the more than one million family enrollments that have only one family member covered; of that number, 60 percent are retirees and 40 percent are active employees. In addition, there could be other changes such as new enrollments or by those currently getting their health insurance through another source, such as from a spouse”s employment. It said that for comparison”s sake–which would not be exact due to various reasons–enrollment in the FEDVIP vision-dental insurance program, which has had a self plus one option since it began in 2007, breaks out as 41 percent self-only, 32 percent self plus one and 27 percent family. OPM further will hold an additional “one-time limited enrollment period” covering the month of February 2016, in which active employees who pay premiums with pre-tax money (as almost all do) will have a second chance to decrease from family coverage to self plus one. Those who don”t pay with pre-tax money, including retirees, can decrease coverage at any time.