Key Takeaways:
- Federal retirees and employees close to retirement should make sure they understand the key differences in dental and vision options within the Federal Employee Dental and Vision Insurance Program (FEDVIP) during the 2024 Open Season.
- Premiums and coverage changes can have a direct impact on your retirement budget. Make informed decisions by reviewing your FEDVIP plan before the enrollment period closes.
What Is FEDVIP, and Why It Matters
- Also Read: What You Need to Know About New TSP Withdrawal Flexibility for Federal Retirees
- Also Read: FEGLI Life Insurance: The Changes Federal Employees Should Know About Before They Head Toward Retirement
- Also Read: How Federal Employees Are Using TSP Plans to Create More Secure Retirements
So, why should you be paying close attention to FEDVIP this year? The 2024 Open Season is your annual window to adjust your coverage, and with changes in premiums and available plans, you’ll want to take a closer look to ensure you’re getting the best value for your money. Whether you’re enrolling for the first time or simply updating your plan, understanding the benefits FEDVIP provides will help you avoid unnecessary costs down the road.
Changes to Watch for in 2024
While FEDVIP plans don’t often undergo drastic changes year over year, slight adjustments in premiums and covered services can make a noticeable difference in your retirement budget. For 2024, you might notice some tweaks to plan benefits, networks, and premiums.
Premiums have increased slightly for certain plans this year. While it’s not a dramatic jump, even a minor increase can add up over time, especially if you’re living on a fixed income. Reviewing your current plan to see if it still meets your needs—or if it’s time to consider switching to a lower-cost option—should be at the top of your to-do list.
Moreover, some plans may have expanded their networks of participating providers, while others might have reduced their coverage in certain areas. It’s critical to check if your preferred dentists and eye care professionals are still in-network to avoid surprise out-of-pocket expenses.
Enrollment Windows—Don’t Miss Out
Open Season runs from November 11 to December 9, 2024. This is the one time each year where you can either enroll in FEDVIP or make changes to your existing coverage. If you let this window pass without taking action, you won’t be able to adjust your plan until next year’s Open Season—unless you experience a qualifying life event, like a move or marriage, which may allow you to change your coverage outside this period.
For retirees, it’s especially important to ensure that your dental and vision needs are met before you hit any unexpected bumps. Vision care, such as new glasses or even cataract surgery, becomes increasingly relevant, and the right dental coverage can make a significant difference when it comes to expensive procedures like crowns or dentures.
Understanding FEDVIP Premiums in Retirement
Now, let’s talk numbers. As of 2024, federal employees and retirees enrolled in FEDVIP pay their premiums through pre-tax payroll deductions, which provide some relief on their overall tax burden. However, retirees do not enjoy this tax break; premiums are typically paid with post-tax dollars, which means your retirement income could take a bigger hit if premiums increase.
The bottom line is that, even with modest increases, premiums can chip away at your fixed income over time. That’s why it’s essential to not only focus on the monthly premium itself but also on the total out-of-pocket costs of dental and vision services. You may find that a slightly higher premium could actually save you money if it offers more comprehensive coverage for the services you use the most.
Should You Stick With Your Current Plan?
If you’re happy with your coverage, you might think there’s no reason to re-evaluate during Open Season. But even if you don’t intend to switch plans, it’s smart to review what’s new in 2024 to ensure you’re still getting the best possible deal. FEDVIP gives you access to a wide range of plan options, each offering different coverage levels, networks, and costs.
If you’ve recently retired or are close to retiring, your dental and vision needs may be changing, which could make this a good time to reassess your current coverage. Additionally, if you’re still within a few years of retirement, now is the time to consider locking in coverage that will serve you well in the years ahead.
Maximize Your FEDVIP Benefits
It’s easy to forget about dental and vision coverage when it’s running smoothly, but the costs of neglecting it can quickly add up. FEDVIP offers some key perks that make it worth considering:
- Preventive care is usually fully covered. Cleanings, checkups, and basic eye exams are often included without any out-of-pocket cost, which can save you a significant amount over time.
- More specialized services, like dental implants or progressive lenses, are partially covered. These procedures can be expensive if you’re paying out of pocket, so it’s important to make sure your plan covers the treatments you need.
Even if you’re no longer working, keeping your dental and vision coverage intact is crucial to maintaining your overall health and quality of life. FEDVIP can provide peace of mind in retirement, especially if you choose a plan that covers the kinds of services you’re most likely to need.
How to Enroll or Update Your FEDVIP Plan
Enrolling or making changes to your FEDVIP plan is a straightforward process, but it does require some attention to detail. Log into your BENEFEDS account during Open Season to compare available plans and make adjustments. You can also view a breakdown of the benefits each plan offers, making it easy to compare premiums and out-of-pocket costs. If you’re a federal retiree, you’ll still have access to the same plans as current employees, which means you won’t lose any coverage options.
Once Open Season ends, you’ll be locked into your chosen plan for the next year. This makes it even more important to ensure you’re making the right decision for your current and future needs.
Make the Most of FEDVIP in 2024
This year, don’t overlook your dental and vision coverage when preparing for Open Season. FEDVIP is an essential part of your healthcare strategy in retirement, and it’s worth taking the time to ensure your plan offers everything you need at a price you can afford. With premiums and coverage options shifting slightly each year, even small adjustments can make a big difference in both your short-term and long-term healthcare costs.
By staying informed, comparing plans, and carefully considering your healthcare needs, you can confidently choose the best FEDVIP plan to fit your retirement lifestyle.
