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  • Health Premiums Going Up
    Posted On: Oct 05, 2019

    WASHINGTON, DC – The U.S. Office of Personnel Management (OPM) announced today that for plan year 2020, the average total premiums for current non-Postal employees and retirees enrolled in plans under the Federal Employees Health Benefits (FEHB) Program will increase 4.0 percent. This year’s increase, while higher than last year’s historically low increase, is comparable to average increases from the past 5 years.

    “Today’s announcement is the culmination of a yearlong effort,” said Director Dale Cabaniss.  “Our employees have worked tirelessly on behalf of all Feds and retirees to secure them world-class healthcare and give them the knowledge to make informed decisions for their families.”

    Under the Federal Employees Dental and Vision Insurance Program (FEDVIP), the overall average premium for dental plans will increase by 5.6 percent, and the overall average premium for vision plans will increase by 1.5 percent.

    The Affordable Care Act’s Health Insurance Providers Fee was waived last year by Congress (2018 H.R 195), which contributed to the historic low premium rate increase.  The Providers Fee is an excise tax on many health insurers.  This year the fee was not waived, which has an effect on the premium rate increase.

    Federal Benefits Open Season begins November 11 and ends December 9, 2019. The annual Federal Benefits Open Season gives Federal employees and retirees and other eligible individuals the opportunity to review their FEHB and FEDVIP plan options, make changes, and enroll for the upcoming benefit year that begins January 1, 2020. Federal employees may also use Open Season to elect to make pre-tax contributions to health care and/or dependent care flexible spending accounts under the Federal Flexible Spending Account Program (FSAFEDS).

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