U.S. Office of Personnel Management - Ensuring the Federal Government has an effective civilian workforce

2003 FEHB Premiums

In general, FEHB rates reflect changes in the health care marketplace and those costs are continuing to increase. The FEHB Program uses private market competition and consumer choice to provide comprehensive benefits at an affordable cost to enrollees and the Government. In addition, we use firm negotiation with health carriers to keep cost increases as reasonable as possible.

Contributors to the Premium Increase

Factor	Government	Enrollee	Total	Change	Change Last Year
Average 2002 Biweekly Premium	$159.39	$68.20	$227.59
Increased Drug Costs	$5.72	$2.24	$7.96	3.5%	4.9%
Utilization, Technology & Medical Inflation	$13.23	$5.18	$18.41	8.1%	9.5%
Demographics (Age, Sex, etc.)	$1.63	$0.64	$2.27	1.0%	0.7%
Benefit Changes	($0.98)	($0.38)	($1.36)	-0.6%	-1.6%
Enrollee Choice (Plan Movement)	($1.96)	($0.77)	($2.73)	-1.2%	-0.6%
Other (Reserves, Financing, etc.)	$0.49	$0.19	$0.68	0.3%	0.4%
Average 2003 Biweekly Premium	$177.52	$75.30	$252.82		--
Average Biweekly Change	$18.13	$7.10	$25.23	11.1%	13.3%