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NARFE: Modest FEHB Premium Increases Welcome News for Feds

Alexandria, Va. (September 26, 2018) – The Office of Personnel Management (OPM) today announced the average Federal Employees Health Benefits (FEHB) Program premium for America’s retired and active federal workers will increase 1.3 percent in 2019, with the average enrollee’s share rising 1.5 percent. In response, Richard G. Thissen, president of the National Active and Retired Federal Employees Association (NARFE), released the following statement:

“FEHB has been a model healthcare program for years, providing enrollees choices between competing, quality health insurance plans. The very modest increase in premiums for 2019 shows the model is working to keep costs down as well. While, in a perfect world, we would love to see premiums go down, the reality is a 1.3 average increase in premiums – the lowest since the 1996 plan year – is welcome news for federal employees and retirees.

“On behalf of NARFE, I would like to thank the hard-working federal employees at the Office of Personnel Management’s Healthcare and Insurance division for their work in keeping premiums down for enrollees going into 2019.

“But even with this very modest premium increase, federal employees still face the prospect of their take-home pay decreasing due to the proposed federal pay freeze. It is up to Congress to step up to prevent that from happening. Unfortunately, it appears House and Senate negotiations have stalled on the appropriations bill that, if passed, would provide a 1.9 percent average pay increase, and the decision on federal pay likely will be delayed until after the election. We urge supportive members of Congress to continue to push for a federal pay raise to cover even this very modest premium increase.”

Open Season, the annual period when eligible federal employees, retirees and survivors can make changes to their health benefits coverage for the following year, will be held November 12 through December 10, 2018.

FEHBP premiums increased 3.8 percent in 2012, 3.4 percent in 2013, 3.7 percent in 2014, 3.2 percent in 2015, 6.4 percent in 2016, 4.4 percent in 2017, and 4.0 percent in 2018.

Also announced today, under the Federal Employees Dental and Vision Program (FEDVIP), plans will see the overall average premium for dental plans will increase by 1.2 percent, while the overall average premium for vision plans will decrease by 2.8 percent. “Decreasing premiums for vision plans provide an added bonus for feds this year,” said Thissen.

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The National Active and Retired Federal Employees Association (NARFE), one of America’s oldest and largest associations, was founded in 1921 with the mission of protecting the earned rights and benefits of America’s active and retired federal workers. The largest federal employee/retiree organization, NARFE represents the interests of 5 million current and future federal annuitants, spouses and survivors.

CONTACT:
Helen Mosher
NARFE Vice President, Communications
hmosher@narfe.org
(703)838-7760