Key Takeaways
- Federal employees are facing higher health insurance premiums and expanded benefit options in 2024.
- Significant reforms, including enhanced fertility and Medicare coordination benefits, are in place for federal employees and retirees this year.
Federal Employee News Roundup: Big Announcements That Could Affect Your Benefits in 2024
As we move through 2024, federal employees are experiencing various changes to their benefits that could have a lasting impact on their financial well-being. From increases in health insurance premiums to new retirement plan options and expanded medical coverage, it is crucial for federal employees to stay informed about these updates to ensure they are making the most of their benefits.
How Are Health Benefits Changing for Federal Employees in 2024?
Health benefits under the Federal Employees Health Benefits (FEHB) program have undergone several changes in 2024, most notably the increase in premiums. The average enrollee share for health insurance has surged by 13.5%, nearly double the 7.7% increase from 2023. Postal employees are also seeing an 11.1% rise in their share of health premiums, making it essential for federal employees to review their health plans during this year’s open season.
The premium increases, driven by rising healthcare costs, may strain employees’ budgets. However, open season provides an opportunity for workers to compare available plans and switch to one that offers better coverage or lower out-of-pocket costs. This year, with such steep increases, it’s more important than ever to review all plan options to find the best fit for both healthcare needs and financial circumstances.
What Should You Do During Open Season?
Open season in 2024 is an essential time for federal employees to review and adjust their health insurance coverage. With premium hikes on the horizon, employees need to evaluate all available plans and assess whether switching to a different plan may help save money while still offering adequate coverage. The FEHB Plan Comparison Tool is a helpful resource that allows employees to compare costs, out-of-pocket expenses, and plan benefits based on location and family needs.
Additionally, employees should consider enrolling in or updating their flexible spending accounts (FSAs), which allow them to set aside pre-tax dollars for healthcare and dependent care expenses. This can further help mitigate the impact of rising healthcare costs.
Impact of Medicare Coordination on FEHB Plans in 2024
In 2024, federal employees and retirees are seeing significant changes in the coordination between FEHB plans and Medicare. New Employer Group Waiver Plans (EGWPs), which function similarly to Medicare Advantage plans, are being introduced to help reduce healthcare costs for retirees enrolled in both FEHB and Medicare Parts A and B. These new options offer nearly full coverage for hospital and medical expenses, with little to no out-of-pocket costs.
For retirees already enrolled in Medicare, the new plan options could save them hundreds, if not thousands, of dollars annually. In some cases, retirees will be auto-enrolled in Medicare Advantage plans by their FEHB carriers, though they will have the option to disenroll if they choose.
This expanded coordination between FEHB and Medicare is expected to reduce overall healthcare costs for federal retirees, making it a key development to watch in 2024. Federal retirees should also be aware of the Medicare Part D prescription drug changes that will cap annual out-of-pocket drug costs, which could offer additional savings.
How Will Federal Retirement Benefits Be Affected in 2024?
For federal employees nearing retirement, 2024 brings both opportunities and challenges in terms of retirement benefits. The Thrift Savings Plan (TSP), a cornerstone of federal retirement planning, remains an important vehicle for building retirement savings. Employees should ensure they are maximizing their TSP contributions, especially in light of inflation and potential market volatility.
Cost-of-Living Adjustments (COLAs) are also a critical consideration for retirees, as they help protect against inflation. Unfortunately, retirees under the Federal Employees Retirement System (FERS) will not receive a full COLA if inflation rises above 2%. This shortfall highlights the importance of careful retirement planning and ongoing efforts to push for legislative reforms to ensure that FERS retirees are better protected against rising costs.
Will There Be Changes to the Thrift Savings Plan in 2024?
While no significant changes to the TSP structure are expected in 2024, employees should stay informed about potential updates to contribution limits and matching contribution policies. In addition, federal employees should take this time to reassess their TSP investment portfolios to ensure they align with their long-term retirement goals, particularly given ongoing economic uncertainty.
Paid Leave and Other New Benefits for Federal Employees in 2024
In 2024, federal employees will benefit from several new coverage options and enhanced paid leave policies. OPM has expanded coverage for fertility treatments, including in-vitro fertilization (IVF) services, with about two dozen health plans now offering broader coverage of fertility procedures. Additionally, several plans are introducing discounts for non-covered fertility services, providing more options for federal employees looking to grow their families.
New policies around gender-affirming care have also been introduced, with federal health plans now required to cover medically recognized treatments for gender dysphoria, including hormone therapies and surgeries.
Paid leave remains a key area of focus for federal employees in 2024, with discussions underway to expand family and medical leave options. While no specific expansions have been announced yet, employees should stay informed about potential policy changes that could offer more flexibility for personal and family care.
Stay Prepared for Federal Benefits Changes in 2024
The changes to federal employee benefits in 2024 emphasize the importance of staying proactive and informed. With healthcare premiums rising and new benefit options available, it’s crucial for federal employees to take full advantage of open season to ensure they are getting the best coverage possible. Similarly, retirees should remain vigilant about Medicare coordination and any changes to retirement benefits that could impact their financial security.
By regularly reviewing updates from the Office of Personnel Management (OPM) and the Thrift Savings Plan (TSP), federal employees can stay ahead of the changes and make well-informed decisions that protect both their health and financial well-being.
