National Active and Retired Federal Employees Association Issues Statement on Health Benefits Premium Program Increase for 2020

ARLINGTON, Virginia, Oct. 2 -- The National Active and Retired Federal Employees Association issued the following statement by National President Ken Thomas in response to the Office of Personnel Management announcing that the average Federal Employees Health Benefits Program premiums for America's active and retired federal workers will increase by an average 4.0 percent in 2020 - with the share paid by federal civil servants increasing by an average of 5.6 percent:

"With the cost of health care services rising in general, and federal employees on track to receive only a modest pay raise in 2020, a premium increase of this size comes as unwelcome news. Undoubtedly, the 5.6 percent average increase for enrollees will negatively affect the take-home pay of active federal employees and the families they support.

"It's even worse for retirees whose purchasing power and quality of life are already diminished from increases in the general cost of living.

"While the modest increase for next year is disappointing, it's important to remember that last year's average FEHB premium increase was historically low. Additionally, FEHB enrollees have tremendous flexibility given the variety and number of health plans offered which connects them with renowned medical professionals, services and programs resulting in exceptional quality of care. NARFE encourages all participants to thoroughly review the plans to select the one that best fits their needs.

"Each year, employees of OPM's Health Care and Insurance Division work hard to negotiate affordable benefits and rates, and I thank them for their dedication and service to the federal community."

Background:

* Open Season, the annual period during which eligible federal employees, retirees and survivors can make changes to their health benefits coverage for the following year takes place November 11-December 9, 2019.

* Overall, the federal government's contribution in 2020 will increase by an average of 3.2 percent and the enrollee share will increase an average of 5.6 percent.

* Annual average premium increases for previous years were 1.3 percent in 2019, 4.0 percent in 2018, 4.4 percent in 2017 and 6.4 percent in 2016.

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As the only organization solely dedicated to the general welfare of all federal workers and retirees, NARFE delivers valuable guidance, timely resources and powerful advocacy. For nearly a century, NARFE has been a trusted source of knowledge for the federal community, Capitol Hill, the executive branch and the media.