Increases Due to Higher Claims

The increases in FEGLI rates for 2004 and 2005 follow increases in many age ranges that took effect in January of this year. Along with the increases, the new age bands at age 65 and above were created; previously, everyone age 65 and older paid the same rates. The Office of Personnel Management says the changes reflect the higher claims rates now being experienced in FEGLI optional coverage at higher ages, due to a 1998 law allowing older enrollees to keep their coverage without suffering the prior automatic reduction after age 65. While the need for raising the premiums at higher ages quickly became apparent, OPM has said, the increases are being phased in to soften the impact on affected individuals.