The Federal Employees Health Benefits Program will reduce insurance plan choices from 271 to 159 in 2024, but offer employees and beneficiaries improved access to a range of coverage. YinYang / Getty Images
Federal workers will pay 7.7% more towards health insurance premiums in 2024
Next year, the Federal Employee Health Benefits Program will feature new coverage of anti-obesity medication, as well as expanded access to mental health, assistive reproductive technology and gender-affirming care.
Federal employees and retirees will pay an average of 7.7% more on their health care premiums in 2024, a slight decrease from last year’s biggest price hike in a decade.
The government’s share of Federal Employees Health Benefits Program premiums will increase by an average of 5%, bringing the overall increase to 5.8%, according to the Office of Personnel Management. In 2023, feds were estimated to pay an average of 8.7% more on premiums than the previous year, and the overall average premium increase of 7.2% was the highest for the nation’s largest health insurance program since 2011.
On average, federal workers enrolled in “self-only” plans will pay an additional $8.05 per biweekly pay period, while feds in “self plus one” insurance plans will pay $16.73 more next year. Federal employees enrolled in family coverage will pay an average of $21.16 per pay period in 2024.
Under the Federal Employees Dental and Vision Insurance Program, the average premium for dental plans will increase by 1.4%, while premiums for vision coverage will increase by an average of 1.1%.
The FEHBP’s annual open season, in which federal employees can choose from a variety of national and regional insurance carriers and coverage plans, will run from Nov. 13 to Dec. 11. More federal workers will be required to select a new plan than usual this year, as the overall number of options will reduce from 271 plan choices to 159. That’s because Humana is withdrawing both from the FEHBP and from employer-sponsored insurance as a whole over the next two years.
Beginning next year, OPM has secured additional benefits for FEHBP enrollees in the form of “comprehensive” coverage of FDA-approved anti-obesity medication and improved access to mental health and substance abuse disorder services, including telehealth, at low or no cost sharing. Additionally, the program will provide stronger coverage of treatments related to assisted reproductive technology like artificial insemination, as well as gender-affirming care for transgender and other gender diverse enrollees.
And insurers will expand coverage of prenatal and postpartum care, including childbirth education classes, group prenatal care, as well as home-based health care services both during pregnancies and postpartum.
Additionally, OPM announced that it is expanding eligibility for Dependent Care Flexible Spending Accounts to active-duty members of the military and active guard reserve members and their 400,000 dependent family members.