By now you’ve probably heard that FEHB premiums will increase by an average of 7.2% in 2023 depending on which plan you’re enrolled in. Compare this to 2022 when the overall average premium increase was 2.4%.
The OPM attributes the higher premiums to expenses related to COVID-19: “In 2021, the coronavirus pandemic cost the FEHB Program about $2 billion (3-4% of 2021 claims ) to test and treat COVID-19 patients, which impacts rates for the 2023 plan year.”
In addition to the hike in premiums, federal workers and retirees will see their share of FEHB premiums increase by 8.7% (on average) which is the highest since 2011. Meanwhile, the increase in the government’s share of premiums will be 6.6% in 2023.
It’s also important to learn about the significant changes in plans for 2023. Some FEHB plans will drop out while others will expand the geographic regions covered.
Plans That Will Drop Out Of FEHB In 2023
- Blue Open Access in Georgia
- HealthKeepers in Virginia
- EmblemHealth Plan in New Jersey and New York
- BlueAdvantage HMO in Colorado
- Blue Preferred HMO in Missouri and Illinois
What To Do If Your Plan Has Dropped Out Of FEHB
If you’re currently enrolled in a plan that will no longer be available in 2023, you can change plans during Open Season which runs from November 14th through December 12th. If you don’t choose a new FEHB plan, you’ll be automatically enrolled in the lowest-cost national plan. According to OPM, in 2023 this will be the GEHA Indemnity Benefit Plan’s “Elevate” option.
“Considering the FEHB premium hike and plans that are no longer participating, Open Season is more important than ever.”
FEHB Plan Choice For 2023
There will be 271 plan choices in 2023 compared to 275 plans in 2022. These include:
- 18 Fee-for-Service (FFS) plan choices (excluding HDHPs and CDHPs)
- 14 nation-wide FFS plan choices open to all
- 4 FFS plans with availability limited to certain groups (Compass Rose, Foreign Service Benefit Plan, Rural Carriers Benefit Plan, and Panama Canal Area Benefit Plan)
- 188 HMO plan choices (excluding HDHPs and CDHPs)
- 37 High Deductible Health Plan choices (HDHP), 2 of which are nationwide
- 28 Consumer Driven Health Plan choices (CDHP), 2 of which are nationwide
Considering the FEHB premium hike and plans that are no longer participating, Open Season is more important than ever. When you take the time to compare the FEHB and FEDVIP plans for 2023, you may find that switching plans can save you money. For more information go to: www.opm.gov/healthcare-insurance/healthcare/reference-materials/federalbenefitsopenseasonhighlights.pdf
