Posted on Thursday, 28th September 2023 by Dennis Damp
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The annual Federal Benefits Open Season 2023 starts on November 13 and is open through December 11, 2023. FEHB participants can review all available plans and change their health, vision and dental enrollments for the 2024 benefit year.
The overall average FEHB premium is increasing 7.7% for plan year 2024 and the new rates were announced this week. The overall FEDVIP average premium for dental plans is increasing by 1.4 percent, and the average premium for vision plans will increase 1.1 percent.
The premiums for non-postal employees and annuitants enrolled in FEHB will increase by 5.8%, when accounting for the average increases for both the government’s, and participant’s share of the cost. The government is contributing 5% more toward FEHB premiums starting next year.
Blue Cross Blue Shield Basic to GEHA Standard
I checked the premiums for the self-plus-one Blue Cross Blue Shield (BCBS) basic (113) and Government Employees Health Association (GEHA) standard (316) plans. BCBS monthly premium increased $44.91 to $517.03 while GEHA’s premium increased $6.40 to $326.79.
The annual increases are $538.92 for BCBS Basic and $76.80 for GEHA Standard. BCBS basic increased 9.5% while GEHA standard increase only 1.9%.
OPM will post the new 2024 plan brochures in October. Major providers may already have them available. I called GEHA and they are sending out the new 2024 guide in two weeks.
You will be able to compare your current plan to several hundred health plans available for 2024.
Medicare Advantage Plans (Heads Up for the Upcoming Open Season)
Medicare Part B Premiums
In March, Medicare Trustees forecasted monthly Part B premiums would increase to $174.80 in 2024 from $164.90 this year, a 6% increase. The new rates will be announced soon and they could be higher now that a new high-cost Alzheimer drug was approved for the Part D Medicare program.
Summary
Explore lower cost FEHB plans to offset high costs elsewhere. This is especially true for those with Medicare. Your FEHB plan becomes your secondary coverage and they cover many of the costs Medicare doesn’t, including copayments, coinsurance and deductibles.
- Should You Change to a Lower Cost FEHB Plan When You Sign Up for Medicare
Use the tools available to compare plans and ensure the plan you select meets your needs throughout the year ahead.
Helpful Retirement Planning Tools
- Retirement Planning for Federal Employees & Annuitants
- The Ultimate Retirement Planning Guide – Start Now
- Deciding When To Retire – A 7-Step Guide
- Annuity Expectations – Before and After
- TSP Guide
- Budget Work Sheet
- Medicare Guide
- Social Security Guide
Disclaimer: The information provided may not cover all aspect of unique or special circ*mstances, federal regulations, medical procedures, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance including OPM’s retirement center. Over time, various dynamic economic factors relied upon as a basis for this article may change.
The advice and strategies contained herein may not be suitable for your situation and this service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.
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Posted in UNCATEGORIZED | Comments (2)
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2 Responses to “2024 FEHB Premiums Increasing 7.7% – Up, Up and Away”
Jason Says:
September 28th, 2023 at 10:03 pmIf you have an existing 401k should you roll it over into the TSP or keep it separate?
- Dennis Damp Says:
September 29th, 2023 at 6:51 amThere are advantages such as consolidating your retirement assets into one account to make it easier to manage. You can only roll over cash, so you would have to convert your current 401K to cash before the rollover. The TSP has a rollover concierge service. A rollover specialist will assist you with each step of the process. They’ll contact the providers who administer the account you’re rolling over to the TSP, complete distribution paperwork on your behalf, and contact you for any signatures needed to finalize the rollover. Then the specialist will ensure that the money you want to roll over enters your TSP account correctly. Call 1-877-968-3778 and follow the prompts to access the rollover concierge service.
Jason Says:
