The open season for changing existing plans or levels or types of coverage will be November 14-December 12. Image: Dilok Klaisataporn/Shutterstock.com

The enrollee share of FEHB premiums will rise 8.7 percent on average for 2023, OPM has said, the largest jump in more than a decade and more than double the 3.8 percent average increase in the enrollee share for this year over last year.

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.

For the largest FEHB plan, Blue Cross/Blue Shield Basic, biweekly enrollee rates will be $86.67 for self-only, $237.91 for self and family, and $217.90 for self-plus-one. Those are increases of $6.49, $25.62 and $21.77 biweekly, respectively. For retirees, who pay on a monthly basis, those rates will be $187.78, $515.48 and $472.12, respectively, up $14.05, $55.52 and $47.17.

The overall average increase is 7.2 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 6.6 percent. The overall increase of 7.2 percent for 2023 is the largest since the 9 percent for 2011. 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 14-December 12. 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 0.21 percent for dental plans and decrease by 0.41 percent for vision plans.

There will be 271 FEHB plans, down by four, while the FEDVIP carriers will remain the same—five nationwide carriers for vision insurance, and seven nationwide and five regional carriers 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.

That is not the case with the flexible spending account program; those who wish to have a dependent care and/or health care account in 2023 must make a new election during the open season. Maximums are $5,000 for dependent care accounts and $2,850 for health care accounts; the latter figure may rise under an inflation adjustment announcement from the IRS that is yet to come.

Unspent dependent care money must be used by March 15 of the next year and $570 of unspent health care money can be carried into the next year. To be eligible under those policies, the individual must have that kind of account for the following year.

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See also,

Report Assesses Impact of Repealing Windfall, Offset Provisions

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Exceptions to the 10 Percent Early Withdrawal Penalty

Your FERS Annuity is Worth More Than You Think

2022 Federal Employees Handbook