United States 

Office of 

Personnel Management 

The Federal Government’s Human Resources Agency

Benefits Administration Letter

Number: 14-405 Date: October 9, 2014

Subject: 2014 Federal Benefits Open Season: FSAFEDS and FEHB Program Significant 

 Plan Changes 

This Benefits Administration Letter (BAL) is the fifth in our series of 2014 Federal Benefits Open 

Season BALs for the Federal Flexible Spending Account Program (FSAFEDS), the Federal 

Employees Dental and Vision Insurance Program (FEDVIP) and the Federal Employees Health 

Benefits (FEHB) Program. This BAL provides information on significant plan changes for 

FSAFEDS, FEDVIP, and the FEHB Program for 2015. 

This year’s Federal Benefits Open Season will run from Monday, November 10 through Monday, 

December 8, 2014. 

FSAFEDS 

FSAFEDS is implementing the following two significant changes effective for the 2015 plan year. 

Health care and limited expense flexible spending accounts (FSAs) will no longer have a grace 

period; instead, qualifying participants will be able to carry over up to $500 of unused funds to the 

next plan year. The first opportunity for carryover will be at the end of 2015. Current participants 

cannot carry over funds from 2014 to 2015, but will still have a grace period through March 15, 

2015. Dependent care FSAs will continue to have a grace period each year and cannot carry over 

funds from one year to the next. 

The minimum annual election for the three types of FSAs (health care, limited expense health 

care, and dependent care) will be reduced from $250 to $100. 

FEDVIP 

There are no 2015 FEDVIP significant changes. 

FEHB Program 

The remainder of this letter provides important information on the significant changes affecting 

certain plans in the FEHB Program for the upcoming Open Season. The first attachment to this 

BAL identifies the FEHB plans and their corresponding significant changes. Some of these events 

will require action on the part of agencies and enrollees. 
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Please note there are plans leaving the FEHB Program at the end of 2014 or reducing their service 

areas and terminating their enrollment codes. Since employees in these terminating plans and 

service area reductions must enroll in a new plan during Open Season if they wish to continue 

health insurance coverage in 2015, please distribute this list throughout your agencies. It is your 

responsibility to monitor employees who are covered by these terminating plans or service area 

reductions and follow up with those who have not submitted an enrollment change before the end 

of Open Season. Enrollees in the terminating plans and enrollment codes who do not change their 

health plan by enrolling in another FEHB plan during Open Season will not have health benefits 

for 2015. 

TIP: Distribute the attached list of significant FEHB plan changes to all employees so they can 

check to see if their plan or service area will continue to participate in the FEHB Program in 2015. 

Table 1: Plans Leaving the FEHB Program 

Table 2: Plan Reducing Service Areas and Terminating Enrollment Codes 

What Must Employees Do? 

 Employees in terminating plans (Table 1) or service area reductions with terminating 

enrollment codes (Table 2) must enroll in a new health plan during Open Season if they 

want coverage. If they do not enroll in a new plan, they will not have FEHB coverage in 

2015.

 New Coverage: Coverage under an enrollee’s new health plan will be effective the first 

day of the pay period beginning on or after January 1, 2015; for most employees this will 

be Sunday, January 11, 2015. Enrollees will remain covered and receive the 2014

benefits of the old plan until coverage under the new plan becomes effective.

What Must You Do? 

 You must notify employees enrolled in the plans listed in Tables 1 and 2 to select new 

plans. Advise your employees if they do not choose new plans, they will not have FEHB 

coverage in 2015. 

 Distribute copies of this list to employees with your agency’s notice about Open Season 

along with copies of the second attachment, FastFacts: What to do When Your Health 

Plan is Terminating Coverage in Your Area or Leaving the Federal Employees Health 

Benefits (FEHB) Program. 

 Follow up with employees in these plans and remind them to select new plans.

 Belated changes: Some employees still might not receive instructions to change plans 

during Open Season. We encourage you to be liberal in accepting belated Open Season 

changes from employees enrolled in terminating plans or plans with service area 

reductions and terminating enrollment codes.

What Will Health Plans Do? 

Plan Notification: The plans in Tables 1 and 2 have been instructed to notify enrollees of the 

need to select new plans for 2015; however, because some plans’ enrollment and address lists may 

not be up-to-date, we encourage you to accept belated changes. 
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Table 3: Plans Reducing Service Areas without Terminating Enrollment Codes 

What Must Employees Do? 

Employees in the service areas being terminated should elect a new health plan for 2015; however, 

employees who do not choose a new health plan will only have emergency services where they live 

and will have to travel to their plan’s remaining service area to receive full benefits. 

What Must You Do? 

 You must notify employees enrolled in the plans listed in Table 3 to select a new plan. 

Advise your employees if they do not choose a new plan, they will only have emergency 

services where they live and they will have to travel to their plan’s remaining service area 

to receive full benefits in 2015. 

 Distribute copies of this list to employees with your agency’s notice about Open Season 

along with copies of the second attachment, FastFacts: What to do When Your Health 

Plan is Terminating Coverage in Your Area or Leaving the Federal Employees Health 

Benefits (FEHB) Program.

 Follow up with employees in these plans and remind them to select a new plan.

 Belated changes: Some employees still might not receive instructions to change plans 

during Open Season. We encourage you to be liberal in accepting belated Open Season 

changes from employees enrolled in the plan reducing its service area.

What Will Health Plans Do? 

Plan Notification: The plans in Table 3 have been instructed to notify enrollees that their 

respective service areas are being terminated. If enrollees do not choose another health plan, the 

enrollees will only have emergency services where they live and they will have to travel to their 

plan’s remaining service area to receive full benefits in 2015. However, because a plan’s 

enrollment and address lists may not be up-to-date, we encourage you to accept belated changes. 

Table 4: Plan Terminating Option and Enrollment Codes 

What Must Employees Do? 

 Employees in the plan dropping an option (Table 4) may choose a new health plan during 

Open Season or remain with their current plan and be switched automatically into the 

plan’s remaining option specified in Table 4.

 New Coverage: Coverage under an enrollee’s new health plan or option will be effective 

the first day of the pay period beginning on or after January 1, 2015; for most employees 

this will be Sunday, January 11, 2015. Enrollees will remain covered and receive the 

2014 benefits of the old plan or option until coverage under the new plan becomes 

effective.

What Must You Do? 

 Advise your employees who are enrolled in the plan that is dropping an option (Table 4) 

that if they do not choose a new health plan, they will be automatically transferred into the 

plan’s remaining option as specified in Table 4. 

 Distribute copies of this list to employees with your agency’s notice about Open Season.

 Follow up with employees in the plan and remind them that if they do not choose a new 

health plan, they will be automatically transferred into the plan’s remaining option 
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specified in Table 4. 

 Belated changes: Some employees still might not receive instructions regarding their 

plan dropping an option. We encourage you to be liberal in accepting belated Open 

Season changes from employees enrolled in the plan dropping an option listed in Table 4.

What Will the Health Plan Do? 

 Plan Notification: The plan in Table 4 has been instructed to notify enrollees that their 

current plan option is being discontinued and that if they do not change to another plan 

during Open Season, they will be switched automatically into one of the plan’s remaining 

options specified in Table 4.

Table 5: Plan Contract and Enrollment Code Merger with Terminating Enrollment Codes 

Table 6: Enrollment Code Mergers 

What Must You Do? 

For Tables 5 and 6, your payroll offices must automatically move enrollees into their plan’s 

surviving code unless the enrollees select another health plan during Open Season. 

Table 7: Plan Splitting a Service Area and Creating a New Enrollment Code (in Addition to 

the Existing Enrollment Codes)

Table 8: New Plans Entering the FEHB Program 

Table 9: Plans Adding New Options and Enrollment Codes 

Table 10: Service Area Expansions with New Enrollment Codes

Table 11: Service Area Expansions without New Enrollment Codes 

What Must You Do? 

You must include the new plans, the plans with new options, and the plans with expanded service 

areas (Tables 7-11) when you count the number of eligible employees and place your order for 

brochures. 

Conclusion 

Again, this year’s Federal Benefits Open Season will run from Monday, November 10 through 

Monday, December 8, 2014. 
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We encourage you and your employees to visit our website at www.opm.gov/openseason for the 

most up-to-date information. Please note that 2015 Plan information will be posted on our website 

by the first week of November. 

We look forward to working with you to ensure Federal employees have a successful Open 

Season. 

Sincerely, 

John O’Brien

Director 

Healthcare and Insurance 

Attachments