Federal Health Insurance Premiums to Jump 13.5% in 2025
Federal employees and retirees face a significant increase in their health insurance premiums in 2025. The average premium for FEHB plans will rise by 13.5%, almost double last year's increase. This is the largest hike in recent memory, with the average enrollee increase being only 3.8% three years ago.
The 13.5% increase is driven by price hikes from providers and suppliers, increased prescription drug usage, and higher behavioral health spending, according to the Office of Personnel Management (OPM). Not all plans will reflect this average increase; some will decrease, stay the same, or increase at different rates. For instance, Health Alliance HMO Standard (K8) will have a 66% higher premium in 2025, costing self-only enrollees $2,222 more. Conversely, Presbyterian Health Plan Standard (PS) in New Mexico will see a 23% decrease, saving self-only enrollees around $732.
Standard BCBS remains the only plan offering out-of-network providers, mail-order prescription drugs, skilled nursing care, and IVF coverage. However, families switching from Standard BCBS to Basic or FEP Blue Focus could save $3,147 or $7,403, respectively, in premiums next year. The premium level of your FEHB plan option will change in 2025, with specific details depending on the individual plan and may include increases or decreases based on plan adjustments.
Federal employees and retirees will pay 13.5% more on average for FEHB premiums in 2025, with varying impacts depending on their specific plan. OPM attributes this significant increase to rising healthcare costs. As always, enrollees are encouraged to review their plan options and consider switching to lower-cost alternatives if suitable for their needs.
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