New Survey Reveals Federal Employees Are Leaving Money on the Table Amid Unprecedented Rise in Health-Care Premiums

National Active and Retired Federal Employees Association Urges Members to Reassess Health Plans and Compare Costs During Open Season

ALEXANDRIA, Va., Nov. 12, 2024 /PRNewswire/ -- Today, the National Active and Retired Federal Employees Association (NARFE) released new member survey data showing that just over half of active (57%) and retired (55%) federal employees review their new health-care plans each year—indicating that thousands may be leaving money on the table by not optimizing their benefits. In the survey, both groups rated choosing a health-care plan more confusing than creating a will, reading Shakespeare, learning a new language or even navigating a divorce.

This data comes at a critical time when Federal Employees will face the highest increases to health-care premiums in over a decade, with the full population of active and retired federal employees (beyond NARFE members) even less likely to change their plan. According to the U.S. Office of Personnel Management (OPM), less than 5 percent of federal enrollees nationwide change their health plans during the Federal Benefits Open Season.

The NARFE survey found that the gap in participation can be attributed to confusion and dread over the task. In fact, more than one-third of members across the board (35% of retired federal employees and 38% of active federal employees) say they'd rather do tasks like go to the DMV, talk about the election or do their taxes than go over health-care plans and change their benefits.

"Open Season is not just an opportunity for those becoming Medicare eligible or experiencing a new medical condition," said John Hatton, Staff Vice President of Policy and Programs of NARFE. "We want federal employees to understand that by failing to review their plans, they could miss out on new benefits, such as the option to choose from multiple nationwide plans that offer comprehensive IVF coverage. With this year's increase in premiums, many could be leaving thousands of dollars on the table by failing to change plans."

Additional data from the survey of 4,801 NARFE members, including 4,107 retired federal employees and 694 active federal employees, found that there is a significant knowledge gap when it comes to understanding how to make informed decisions, narrow their choices and avoid making mistakes when enrolling or updating their plans:

• About 1 in 4 (24%) active federal employees and 1 in 5 (19%) retired federal employees find selecting a new plan too confusing or unpleasant to participate.
• Both groups agree that choosing a health-care plan is more confusing than creating a will, reading Shakespeare, learning a new language or even navigating a divorce.
• Among those who choose not to change their plans, most retired federal employees (85%) and active federal employees (81%) report being content with their current options and do not see the point in making changes – meaning they may not be aware that they could be saving money.

From November 11 through December 9, 2024, more than 2 million active and retired federal employees will qualify to change their health, dental, vision and flexible spending account benefits without a qualifying life event. Both active and retired federal employees can learn more about Open Season, and tools to navigate enrollment, by visiting narfe.org/open-season for helpful resources.

ABOUT THE NATIONAL ACTIVE AND RETIRED FEDERAL EMPLOYEES ASSOCIATION
As the only organization solely dedicated to the general welfare of all federal workers and retirees, the National Active and Retired Federal Employees Association (NARFE) delivers valuable guidance, timely resources and powerful advocacy. For more than 100 years, NARFE has been a trusted source of knowledge for the federal community, Capitol Hill, the executive branch and the media. The mission of NARFE is to defend and advance the earned pay and benefits of America's civil servants. Today, NARFE's team of professional lobbyists continue to work tirelessly on behalf of the federal community. Supported by grassroots activists, NARFE is a leading voice in Washington and across the country. NARFE provides both federal workers and retirees with the clear, reliable and accessible counsel they need to make critical decisions and gain confidence in a secure future.

Media Contact: Amy Robinson 734-548-5575

SOURCE National Active and Retired Federal Employees Association