FEHB Rates Released – Increases Across the Board

/in /by

The Office of Personnel Management has released the rates for the Federal Employee Health Benefits program and, just as expected, the average rate is expected to increase.

There is one surprise, however, and it happens to be an unpleasant one. Initial reports suggested that the Self Plus One option, which is available for the first time in 2016, would have lower rates than the Self Plus Family coverage costed last year. That is not the case.

The average plan increases are:

  • Self only: $5.50 more per pay period
  • Self-plus-one: $8.92 per pay period more than they previously paid for self and family coverage.
  • Self and family: $19.61 more per pay period.

With an average increase of 6.4 percent, this is the highest rate increase in recent memory for the FEHB. From 2013-15 the FEHB increased by 3.4 percent, 3.7 percent, and 3.2 percent respectively.

This is a large increase, but it doesn’t even come close to the increases that federal employees saw during the early 2000’s with increases averaging between 10-12 percent each year. OPM Director, John O’Brien, did not miss the opportunity to point this out.

“We are still in the midst of the lowest consecutive five-year period of premium increases in the FEHBP program,” O’Brien said. “So while higher than last year, those by historic standards were very low increases, and we are still in a period of relatively modest increases.”

Now that the rates are released, everyone is heavily encouraged to shop around and pick the plan that is right for them and their family. Open Season only comes around once a year and it is imperative to make the most out of this time.

 

For more information on the subject, click here.