Understanding Fehb Premium Increase 2025 and Its Impact

The Federal Employees Health Benefits (FEHB) program is facing a premium increase in 2025, and it's essential to understand the impact on you. The FEHB premium increase 2025 is a 6.2% hike.

This increase affects the entire FEHB program, including all plan options and enrollment categories. The average increase is 6.2%, but some plans may have larger or smaller increases.

The FEHB premium increase 2025 will be applied to all premiums, including employee contributions, employer contributions, and self-only premiums. This means that everyone enrolled in the FEHB program will see an increase in their premiums.

The FEHB premium increase for 2025 is a significant one, with an average increase of 13.5% across all plans. This marks the largest increase in the last two decades, and it's essential to understand the impact on federal employees and retirees.

The premium increase will affect both federal employees and retirees, with each group needing different strategies to manage the financial burden. Federal employees will see an average increase of $16.24 per pay period for self-only plans and $26.10 more for family coverage.

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Some plans will see a decrease in premiums, with 28 out of 144 FEHB plans available in 2024 and 2025 experiencing a decrease. However, the largest percentage increase is from Health Alliance HMO Standard (K8), which will see a 66% increase in 2025, costing self-only enrollees $2,222 more next year.

Here's a breakdown of the premium increase by plan type:

With the premium increase, it's essential to review your overall monthly expenses and make necessary adjustments to accommodate the premium coverage. You can also consider switching to a more cost-effective plan during the FEHB open season, which runs from November 11 through December 9, 2024.

The impact of premium hikes on federal employees and retirees is significant. The average increase in FEHB premiums for 2025 is 13.5%, the largest in over a decade.

Federal employees will experience a hike of $10-20 every pay period based on their selected insurance plans. This is because the increase in rates directly translates to higher paycheck deductions on a bi-weekly basis.

Broaden your view: Fehb and Medicare Part B

For retirees, the healthcare premium hike is a major challenge. The FEHB premium deductions are done from the annuity payments for federal retirees, which could significantly affect their quality of living due to budget restraints.

Some plans will have a higher rate of increase for the premium amounts, especially high-deductible and premium health insurance plans. For example, Health Alliance HMO Standard (K8) will have a 66% increase, costing self-only enrollees $2,222 more next year.

The largest decrease in enrollee share of premium is from Presbyterian Health Plan Standard (PS), which is 23% lower in 2025, saving self-only enrollees around $732 next year. However, this is not the case for many plans, and federal employees and retirees should prepare for higher premiums going forward.

Here's a breakdown of the impact on federal employees:

The average premium increase for the Federal Employees Health Benefits program in 2025 is 13.5 percent, which is higher than the 7.7 and 8.7 percent increases over the last two years.

Even with a higher premium, some enrollees may find that their premiums are essentially flat or decreasing slightly. This variation is due to differences in plan offerings and projected claims rates.

Premiums for self plus one coverage can be more expensive than family coverage in some plans, which may seem counterintuitive. This is largely due to a high concentration of retiree couples in self plus one coverage, with higher than average expected claims rates.

In addition to the premium increase, enrollees can look forward to expanded benefits in 2025, including in-vitro fertilization, anti-obesity medication, maternal health, and mental health and substance abuse treatment.

Here's a quick comparison of the premium increases between the FEHB and PSHB programs:

Keep in mind that these are average increases, and actual premiums may vary depending on the specific plan. It's always a good idea to review the offerings and benefits to ensure you're getting the best coverage for your needs.

FEHB enrollees will see more options for comprehensive coverage of in vitro fertilization next year, with both Blue Cross Blue Shield and GEHA offering a $25,000 benefit to help cover the cost.

Carriers will be required to cover at least one anti-obesity GLP-1 drug, as well as at least two oral anti-obesity drug options, starting in 2025.

OPM has announced changes to coverage for maternal health treatments, including mental health treatments for postpartum depression, which all 64 FEHB plans will cover.

Many, but not all, plans will also cover costs of certified nurse midwives, delivery at birthing centers, nurse home visits, and doulas.

All FEHB plans will reimburse behavioral health services offered in primary care settings, incentivizing greater coordination among behavioral health providers and other providers in the health system.

FEHB plans will also cover comprehensive behavioral therapy, including diet and exercise regimens, for those prescribed anti-obesity medications.

PSHB benefits will align with those in FEHB, with the exception of prescription drug benefits, which will be offered through Medicare Employer Group Waiver Plans (EGWPs).

Medicare-eligible Postal annuitants and their family members must enroll in Medicare Part B to access PSHB benefits, with only a few limited exceptions.

On a similar theme: Fehb Plans with Medicare Reimbursement

Federal employees will experience the financial impact of 2025 FEHB premium surges, with an average increase of 13.5% on their premiums for 2025.

The premium hikes will directly translate to higher paycheck deductions on a bi-weekly basis. Federal employees will experience a hike of $10-20 every pay period based on their selected insurance plans.

High-deductible and premium health insurance plans have a higher rate of increase for the premium amounts. The largest percentage increase is from Health Alliance HMO Standard (K8), available in several states, at 66% more in 2025, costing self-only enrollees $2,222 more next year.

Some plans will actually decrease in premium, with the largest decrease in enrollee share of premium being from Presbyterian Health Plan Standard (PS), available in New Mexico, which is 23% lower in 2025, saving self-only enrollees around $732 next year.

Here are some key facts to keep in mind: