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In 2025, FEHB enrollees will see largest health premium increase in over a decade
Beginning in January, federal employees and annuitants in FEHB will pay an average of 13.5% more toward their health care premiums, according to OPM data.
federalnewsnetwork.com
Beginning in January, federal employees and annuitants enrolled in FEHB will pay 13.5% more, on average, toward their health care premiums, according to data the Office of Personnel Management released Wednesday.
The significant premium increase for FEHB plan year 2025 follows a 7.7% jump for 2024, and an 8.7% increase in 2023. OPM said the increase reflects changes in the market over the last year, and generally aligns with other programs in the commercial market.
“The premium increases are due to the impact of price increases by providers and suppliers, increased utilization of certain prescription drugs and behavioral health spending,” OPM said. “Industry-wide cost pressures affect FEHB and PSHB rates similarly.”
In dollars, FEHB enrollees will begin paying an average of $26.10 more toward their biweekly health premiums in 2025.
Accounting for both the participant’s and the government’s shares of insurance costs, FEHB health premiums for enrollees will increase by 11.2% on average, when weighted with the government’s contribution, which is increasing by 10.1%.