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Is a premium increase expected when the new contract ends in 2016?

April 26, 2017contract ends increase Premium

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Is a premium increase expected when the new contract ends in 2016?

1 Answer

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No, premiums do not automatically change in 2016 when the contract term ends. There are no plans today to change the current premiums again, either during this contract term or in 2016. The premiums are set with the expectation that the rates will be sufficient over the lifetime of the enrollee. However, premium rates may change in the future if necessary to reflect the cost of the benefits provided. OPM and John Hancock will continually monitor program experience to ensure premiums are sufficient and will only agree to change them if necessary to make sure sufficient funds will be available to pay benefits to enrollees in the future.