New FEHB Coverage Begins

Also beginning this month are the new premium rates paid by both employees and retirees under the Federal Employees Health Benefits program—effective January 1 for retirees and with the first full pay period of the year for most active employees. Premiums on average are increasing by around 7 percent in 2006, although within that average is a wide variation of actual changes, with some plans exceeding that figure substantially while others had smaller increases or even lowered premiums. Also note that coverage changes also take effect at the same effective dates as the premium changes. Further, any changes in plans or levels of coverage elected in the recently concluded FEHB open season also begin.