Feds face largest healthcare premium increase in a decade
Federal Employees Health Benefits participants will see their premiums increase by an average of 13.5% in 2025, marking the largest annual rise in over a decade, reports Federal News Network. This follows recent increases of 7.7% in 2024 and 8.7% in 2023. OPM attributes the surge to market pressures, including rising provider costs, increased drug utilization, and behavioral health spending. The government’s contribution to FEHB premiums will rise by 10.1%, while participants will pay an average of $26.10 more per biweekly period.
Implications extend to the private sector, as rising healthcare costs likely will drive further increases in commercial insurance rates, impacting employer-sponsored health plans.
Postal Service Health Benefits (PSHB) enrollees will face a smaller average increase of 11.1%, benefiting from Medicare integration under recent reforms. The National Treasury Employees Union has called for higher federal pay raises to offset these growing costs.
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