The Office of Personnel Management has announced that employees of non-postal companies and their annuitants enrolled in Federal Employee Health Benefits Program or the FEHBP could expect to pay about 6.1 percent more on their healthcare premiums starting 2018.
Multiple plan choices
According to Alan Spielman, a tremendous opportunity exists for individuals to examine other alternatives that satisfy their requirements but offer lower premiums. Spielman is the director of healthcare and insurance at the Office of Personnel Management. He continued on to say that the majority of enrollments at FEHB have multiple plan choices offering a lower premium rate. He warned that people should not make choices solely on premium rates.
The FEHBP premiums will go north overall by about six percent in 2018. The US Government will contribute about 3.2 percent more for healthcare premiums of federal employees in 2018. The increase in enrollments will outpace it as usual. As per law, a formula set determines the share of both enrollee and the government when it comes to the payment of FEHBP premiums. The government pays approximately 75 percent of the weighted average of the 2016 premiums. As per Spielman, the government contributes a lower amount of money if a larger number of individuals go for economical premium plans.
For 2018, the increase of 6.1 percent is a little lower compared to the increase in the 2016 premiums. The FEHB participants at that time paid an average of 6.2 percent excess for healthcare in 2017. The enrollees in 2016 paid about 6.4 percent more premium. This number is the maximum in recent financial history.
Employees of the Federal Government could also anticipate paying a little more for Dental and Vision Insurance Program especially created for Federal employees, in 2018. The rise in premiums again will be a little lower than the increases done in 2016. Dental plan participants could expect to pay 1.26 percent more when it comes to premiums. In 2018, the median vision plan premium will go down a little by about 0.48 percent. About 262 healthcare plans will be provided by the FEHBP in 2018. This is 245 plans more than what the participants can choose in 2017.
Participants in the FEHB have complained that the comparatively new OPM self plus one scheme was not as cheap as planned. The enrollees in self plus one scheme will pay a little more to enjoy health care in 2018 compared to 2017.