The Office of Personnel Management administers the FEHB Program, ensuring that it provides the best health care options available to about 8.6 million Federal employees, retirees, and family members. |
THE ADMINISTRATION’S COMMITMENT TO HEALTH CARE FOR THE FEDERAL COMMUNITY
By working with the Administration, OPM will ensure that the options and affordability provided Federal workers will continue. It also will ensure that the FEHB Program is citizen-centered and market-based so that participants can decide what health care options are best for them.
What is the FEHB Program?
Established in 1960, the FEHB Program is the largest employer-sponsored health benefits program in the United States. With about 188 choices, the Program provides over $24 billion in health care benefits each year.
Who is covered by the Program?
When do the new premiums go into effect?
They go into effect in January 2003.
What percentage will health premiums increase?
The overall average FEHB increase will be 11.1 percent. Premiums for Health Maintenance Organizations will increase an average 13.6 percent, while the more traditional Fee-for-Service plans will see an average increase of 10.5 percent.
What is the dollar amount increase?
Those who have self-only coverage will pay on average $4.45 more biweekly, while those with family coverage will pay on average $10.21 more biweekly.
What contributed to the increase?
Some factors include the increased utilization of medical services, the cost of advances in medical technology, and a population that continues to age. These are consistent with trends seen elsewhere in the health care industry.