With major changes coming to the Federal Employee Health Benefits (FEHB) plan, employees and retirees need to pay extra attention to what’s new this year.
In addition to the changes, premiums for most federal employees will be double the cost as last year – as high as 13.5%. And U.S. Post Office employees will be entering a new system, meaning it’s more important than ever to go over your options and make an informed decision.
“It can be very overwhelming with all the options,” said John Hatton, the staff vice president of policy and programs from the National Active and Retired Federal Employees Association (NARFE), a non-profit organization that advocates for the rights of federal employees and retirees. “People can throw up their hands. But if you have educational resources, it can become more manageable. So, do a little research.”
Some of the major changes this year include:
· Expanded fertility benefits, including IVF coverage and artificial insemination
· Anti-obesity medication coverage
· The launch of the Postal Service Health Benefits (PSHB) program
· Dental and vision plan increases
Cindy Blythe, who retired from the U.S. Coast Guard and lives in Kansas, said she isn’t considering any changes this year but will go over her options regardless.
“I’ve had my plans for several years. And my benefits are very good for me and my husband,” she said. “The only thing I’ve changed recently is I went to the Part D for prescriptions, and it’s seemed a bit more expensive. But still, I feel quite comfortable with it.”
Even though Blythe said she isn’t making any changes, she said she’s happy with the new options coming to FEHB – and she’s glad things like fertility and anti-obesity meds will now be covered.
In September, the U.S. Office of Personnel Management (OPM) issued a press release on IVF changes. With FEHB serving 8.2 million people in the U.S., adding benefits like fertility coverage make it competitive with what is being offered in private industry.
“FEHB is vital to OPM’s mission to attract and retain top talent in the federal workforce,” the statement read. “According to the most recent Federal Employee Benefits Survey, two thirds agreed that fertility benefits should be available through FEHB plans, including 76% of people born after 1981.”
Adding coverage for anti-obesity medication is another change in line with private industry, as these medications become increasingly popular.
The changes to the postal services plan mean that while most postal employees will have the same – or similar benefits – not everyone will. The Postal Service Health Benefits program (PSHB) is a new, separate program within the Federal Employee Health Benefits program (FEHB) that goes into effect in January 2025.
Dan Sipe, founder and financial planner for Serving Those Who Serve, a retirement planning firm for federal employees, said using comparison tools to determine what health care plan is best for your family is critical this year – so try out ones offered by OPM and Consumer’s Checkbook. Federal employees and retirees can use them to estimate costs, compare plans, and more.
“You simply cannot have too much quality information about your health plan and its operations, coverages and exclusions,” Sipe said.
