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A rates chart is offered on opm.gov that provides the actual dollar premium change for each
FEHB plan choice and enrollment type. All prospective and current enrollees are encouraged
to review this carefully for specific changes to the enrollee share portion of the premium, with
a reminder that premiums should just be one factor in the enrollee decision. Enrollees should
evaluate all available information to include plan quality and specific coverage information to
make the best decision for themselves and their families.
Similarly Sized Employers
To provide perspective on the annual FEHB premium changes, OPM routinely benchmarks
itself against comparable large employers. The FEHB Program average 5.8% premium
increase for 2024 is slightly less than reported increases by comparable large employers.
• On July 18, 2023, CalPERS Board of Administration announced rate and plan changes
approved for 2024 at an overall average increase of 10.77%. CalPERS is the largest
purchaser of public employee health benefits in California, and the second largest
public purchaser in the nation after the federal government. CalPERS serves more
than 1.5 million members and their families in their health program and is similar in
structure to the FEHB Program as both active employees and annuitants have access
to the same plan options, benefits, and premiums.
• On August 22, 2023, the Business Group on Health (BGH) announced the results of
their Large Employer Health Strategy Survey. The survey posed a series of questions to
employers for their perspectives on topics such as the role that health and well-being
play in the workforce and actions needed to advance the quality of health care. BGH
surveyed 152 large employers representing 19 million lives and found that companies
project a 6% increase on average in their 2024 health insurance plan premiums and
costs.
• PriceWaterhouseCoopers’ (PwC) Health Research Institute (HRI) is projecting a 7%
medical cost trend in 2024, up from 6% in 2023, for both Individual and Group
markets. HRI surveyed US health plans covering 100 million employer-sponsored large
and small group members and 10 million ACA marketplace members. The higher
medical cost trend in 2024 reflects health plans’ modeling for inflationary unit cost
impacts with their contracted healthcare providers, as well as persistent double-digit
pharmacy trends.
• It is important to note that most employers do not offer coverage to their retirees and
those that do generally include those retirees in a separate risk pool. The FEHB
Program covers both annuitants and active employees in the same risk pool. Everyone
enrolled in a plan pays the same premium, regardless of age, health, or preexisting
conditions.
FEHB Cost Drivers Impacting 2024 Premiums
The largest contributor to the 2024 premium increase reported by FEHB carriers is increases
in medical trend, which measures the change in costs and utilization of services. Carriers