Higher premiums, fewer health plans to choose from during open season

Federal employees and retirees will be able to switch health plans during the annual open season, which begins Monday and runs through Dec. 9.

The Federal Employees Health Benefits Program (FEHBP) provides health care coverage for 9 million federal employees, retirees and their families. In September, officials at the Office of Personnel Management announced that health insurance premiums would rise an average of 11.1 percent in 2003. Federal workers with self-only insurance coverage will pay an average of $4.45 more per pay period next year, or $116 a year. Workers with family coverage will pay an average of $10.21 more per pay period, or $265 a year.

Observers blame the increasing cost of already expensive prescription drugs, greater use of medical services, the cost of advanced technology and an aging workforce for the rise in health care premiums. Nonetheless, federal employees, government leaders and lawmakers are concerned over the rapid rise in FEHBP health care premiums. In the past four years, premiums have jumped nearly 50 percent. In 2002, premiums rose by 13.3 percent-the biggest increase since the 1980s. In an effort to offset the costs for federal employees, several lawmakers have introduced legislation that would raise the government's contribution to FEHBP premiums.

During the 2003 open season, employees can use OPM's FEHBP Web site to compare health plans. Features on the site allow employees to enter their zip codes and get a list of the health plans available in their areas. This year, four new insurance plans are joining the program, while 11 are dropping out, bringing the total number of participating plans to 188, down from about 350 five years ago.

Beginning next summer, federal employees will be able to take advantage of flexible spending accounts. Money in the accounts could be used for health services not covered by standard insurance, such as certain dental and vision services.

Check out GovExec.com's Open Season Guide for more information on the Federal Employees Health Benefits Program.