Federal employees will see a 7.7% increase in their health insurance costs in 2024, According to an article in data released by the Office of Personnel Management. This increase is lower than the previous year but still significant. The announcement comes ahead of the Open Season, during which participants can make changes to their health, dental, and vision enrollments. The FEHB program is market-based and the premium rates for 2024 align with those in the commercial market. CalPERS, which purchases health insurance for California state government employees, will have even higher premium rate increases at 10.77%.
Federal employees will pay 7.7% more toward health premiums in 2024
Participants in the Federal Employees Health Benefits (FEHB) Program will experience a significant increase in their insurance costs in 2024. The Office of Personnel Management has announced that federal employees and retirees will pay an average of 7.7% more towards their health premiums starting in January. This increase, although lower than the previous year, will still impact the budgets of participants. The announcement comes ahead of the Open Season, allowing participants to make changes to their health, dental, and vision enrollments for the upcoming benefit year.
Higher premium rates for 2024 compared to CalPERS
While the 7.7% increase in premium rates for 2024 may seem significant, it is worth noting that CalPERS, the insurance purchaser for California state government employees, will have even higher premium rate increases. CalPERS has announced an average increase of 10.77% for 2024, making it the second-largest public insurance purchaser in the nation. The premium rate increases for both FEHB and CalPERS generally align with those in the commercial market.
Specifics of the premium rate increases
For non-postal FEHB participants, the average increase in premiums for 2024 is as follows:
Bringing everything together, the premiums for non-postal employees and annuitants enrolled in FEHB will increase by 5.8% when considering the average increases for both the participant’s and the government’s shares of the cost. The government will contribute 5% more towards FEHB premiums in 2024. These increases come after President Joe Biden planned for a 5.2% pay raise for most civilian federal employees in 2024.