FEHB Premium Announcement in Offing

New rates and coverage terms under the Federal Employees Health Benefits program also are typically announced in early September, in preparation for the open season that runs from mid-November through mid-December for electing coverage for the following calendar year. Premiums are expected to increase once again as FEHB follows general trends in the health insurance market and continues to see the effects of a relatively aged enrollee population that is reflected in many ways, including in prescription drug costs. Coverage terms are not expected to change greatly, in part because the Office of Personnel Management earlier this year in its “call letter” to carriers outlined only relatively modest changes. Any plan dropouts or new joiners also are announced at the same time; one aspect that will be watched will be the trend in high deductible health plans, which the Bush administration has been encouraging.