FEGLI Rates Also Could Rise

Another insurance rates announcement possible soon involves the Federal Employees Group Life Insurance Program. Many FEGLI rates rose at the start of calendar year 2003 in the first of three planned rate hikes that OPM says are necessary because of the increasing number of individuals with unreduced coverage under FEGLI optional coverages after age 65. The Basic insurance rate dropped slightly for 2003, as did Option B (coverage of up to five times of salary) rates in ages 45-64. However, new age bands were added for Option B and Option C (family coverage) for enrollees age 65 and above, resulting in significantly higher premiums for older enrollees in those options.