The Office of Personnel Management has released the 2023 premium rate charts for the Federal Employees Health Benefits (FEHB) program. For federal workers and retirees, their share of FEHB premiums will 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.
2023 Overall Average Premiums Increase
As for the cost of FEHB premiums in 2023, the total average increase for non-postal employees and retirees will be 7.2%. Compare this to 2022 when the overall average premium increase was 2.4%.
The average increase for the Federal Employees Dental and Vision Insurance Program (FEDVIP) will be 0.21% for dental plans. One bit of good news — there will be a decrease of 0.41% for vision plans.
“When you take the time to look at the latest FEHB and FEDVIP plans for 2023, you may find that switching plans can save you money.”
Open Season Is More Important Than Ever
With a 7.2% hike in premiums combined with your share increasing by 8.7%, it’s more important than ever to review all of your options and make changes during Open Season (November 14, 2022 through December 12, 2022).
When you take the time to look at the latest FEHB and FEDVIP plans for 2023, you may find that switching plans can save you money. If you don’t make any changes, you’ll remain in the same plan until the next Open Season in late 2023.
A Bit Of Good News For 2023
Currently employed workers can look forward to an average 4.6% pay increase. This includes a basic pay raise of 4.1% plus 0.5% increase in locality pay. President Biden originally announced his pay raise plan back in March of 2022. It will be the largest pay increase for federal employees since 2002. Of course, you may have to use some of your pay bump to cover higher FEHB premiums.
A Bit Of Good News For 2023
Currently employed workers can look forward to an average 4.6% pay increase. This includes a basic pay raise of 4.1% plus 0.5% increase in locality pay. President Biden originally announced his pay raise plan back in March of 2022. It will be the largest pay increase for federal employees since 2002. Of course, you may have to use some of your pay bump to cover higher FEHB premiums.
2023 Social Security Cost of Living Adjustment (COLA)
As the country deals with record-high inflation, the 2023 COLA has been highly anticipated by federal retirees and those planning to retire soon. For FERS and CSRS Offset retirees who are eligible for Social Security, the 2023 Cost of Living Adjustment (COLA) is expected to be the highest increase since 1981. Based on a formula using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), the latest estimate from the Senior Citizens League puts it at as much as 8.7% for 2023.
As you can see, making sense of all the changes can be confusing. Consider working with an FRC™ trained advisor who understands your federal benefits and can answer your questions.
