Financial planner experts who analyze the Federal Employees Health Benefits Program (FEHBP) warned earlier this fall that health insurance costs for participants would rise significantly this year.
The older generation of federal workers will likely be paying $1,000 to $2,000 more for their health insurance next year. Retirees are at even greater risk of overpaying for coverage in their current health plan.
Surprisingly this has practically nothing to do with higher health premiums (up around 4.9%) that go into effect next January that will be affecting nearly 5 million workers, and retirees that are enrolled in the nation’s largest employer-sponsored health plan.
The Federal Employee Health Benefits Program is agreed upon by experts as one the best in the nation offering workers and retirees coverage regardless of preexisting conditions, age, or lifestyle. Fortunately, there are dozens of plans from nationwide companies such as Aetna and Blue Cross, to local health maintenance organizations with the employer paying about 72% of the total premium.
Premiums in the FEHBP will go up an average of just under 5% next year. That is less than many other programs in the nation (nonfederal 5.9%).
When put into perspective for the average employee, it comes out to around a $7.89 increase every two weeks for self-only coverage. $10.90 for those with self plus one coverage will see premiums, and those with family coverage will rise an average of $10.94.
Anywhere from a $1,000-$2,000 annual increase for federal workers can be expected in 2021.
It is of course up to the policy-holder to search and cut where they can when it comes to curving this increase. If no action to find a better, more affordable plan is taken, then of course expect to pay more with the impending increase.