Yesterday, the Office of Personnel Management (OPM) announced rate information for FEHB/FEDVIP insurance plans for 2025. According to OPM, federal employees' contribution to their health plans is expected to increase by 13.5% next year. This would be the largest premium increase in nearly two decades. OPM says that major cost drivers include increased price of covered medication like weight-loss drugs, behavioral health care services, and greater use of outpatient procedures. Additionally, OPM announced that more plans will offer IVF and fertility care coverage next year. For dental and vision plans, rates are expected to increase by 2.97% and 0.87%, respectively.
The federal government has a responsibility to provide fair pay and affordable health insurance. While employees have options for lower-cost plans, we know those often come at the expense of fewer benefits. Federal workers should not have to sacrifice health coverage because they can’t manage the higher payments. This large increase is just one more reason we will continue to push the President and Congress to provide federal employees an average 7.4 percent increase in 2025 as called for by the FAIR Act. We will also continue to support efforts in Congress to reduce enrollee health care costs, including legislation aimed at lowering the costs of prescription drugs in the FEHPB by increasing transparency and oversight of pharmacy benefit managers who operate as middlemen to negotiate prescription drug prices with drug companies and pharmacies on behalf of individual FEHBP plans.
Open Season for FEHB and FEDVIP will run from November 11 to December 9. With 130 plan options, enrollees in every area of the country have multiple choices with varying coverage options and pricing levels. OPM offers comparison charts at www.opm.gov that can help employees choose a plan. In addition, during the open season, NTEU members will again have access to Consumers’ Checkbook’s Online Guide to Health Plans for Federal Employees and Annuitants. We will provide more information on that resource when it is available