For 2024, OPM highlighted expanded coverage for anti-obesity medication, mental health and substance abuse disorder services, prenatal and postpartum care, assisted reproductive technology and gender affirming care. Image: Valeri Luzina/Shutterstock.com
By: FEDweek StaffThe enrollee share of FEHB premiums will rise 7.7 percent on average for 2024, OPM has said, with a reduction in the number of plans from 271 to 159, largely due to the dropout of Humana regional plans.
The increase is slightly below the 8.7 percent average increase for this 2023, which had been the largest jump in more than a decade. As always there will be variation within the overall average, with higher increases in some plans and the costs in some others essentially flat or decreasing a bit.
“Major cost drivers of the program generally align with those in the commercial market,” OPM said. Traditionally that has meant increases in health care costs generally, and especially for prescription drugs, which accounts for about a quarter of costs in the program.
For 2024, OPM highlighted expanded coverage for anti-obesity medication, mental health and substance abuse disorder services, prenatal and postpartum care, assisted reproductive technology and gender affirming care.
Nearly two-thirds of the 4.1 million FEHB enrollees—about an equal number of family members also are covered–are in one of two plans of Blue Cross/Blue Shield. In Blue Cross/Blue Shield Basic, biweekly enrollee rates will be $95.74 for self-only, $262.60 for self and family, and $238.63 for self-plus-one. Those are increases of $9.07, $24.69 and $20.73 biweekly, respectively. For retirees, who pay the same total premiums but on a monthly basis rather than biweekly, those rates will be $207.44, $568.96 and $517.03, respectively, up $19.66, $53.48 and $44.91.
Biweekly employee rates in Blue Cross/Blue Shield Standard meanwhile will be $150.79 for self-only, $370.68 for self and family, and $366.84 for self-plus-one. Those are increases of $8.39, $22.79 and $19.99, respectively. For retirees, monthly rates will be $326.71, $803.14 and $729.82, respectively, up $18.18, $49.37 and $38.98.
The lineup of nationwide plans will remain the same, with the exception that the Compass Rose plan will offer both a standard option and a high option for 2024.
The total average increase is 5.8 percent but because of the way the cost-sharing formula works, the increase in the enrollee share is larger than the increase in the government share, which will be 5 percent. The government pays about 70 percent of the total cost of FEHB premiums.
The open season for changing existing plans or levels or types of coverage—or, for active employees but not retirees, to enroll in FEHB—will be November 13-December 11. Similar policies apply to the FEDVIP vision-dental insurance program except that in that program retirees may newly enroll.
Average premiums in FEDVIP, where enrollees pay the full premium cost, will increase by 1.4 percent for dental plans and decrease by 1.1 percent for vision plans. FEDVIP carriers will remain the same—five nationwide carriers for vision insurance, and seven nationwide and five regional for dental insurance.
In both FEHB and FEDVIP, an existing enrollment will continue next year unless changed. That is the most common outcome, with only single-digit percentages typically changing plans annually.
Enrollees in plans dropping out however must choose new coverage or else be enrolled by default in the lowest-cost nationwide plan, which will be the GEHA “Elevate” option. OPM said Humana is leaving the FEHB as part of a general withdrawal from employer-offered health insurance.
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See also,
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5 Steps to Protect Your Federal Job During the Shutdown
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