Federal News Network – 9/25/24 – Enrollees in the Federal Employees Health Benefits (FEHB) program are about to see the largest annual increase in their health insurance costs in at least a decade.

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.

PSHB enrollees, on average, will pay $20 more toward their biweekly health care premiums next year.

In contrast, premium increases for new Postal Service Health Benefits (PSHB) program participants will be slightly lower than those for FEHB. Postal enrollees will pay 11.1% more toward their health care premiums. Averaged with the government’s share of the cost, which is increasing by 5.1%, the overall premium increase for PSHB is 6.9%.

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