Federal employees’ health insurance premiums to rise by double digits for third straight year
Some insurance carriers have undergone wide swings in cost, as at least one plan’s premiums will more than double next year.
Federal employees and retirees enrolled in the Federal Employees Health Benefits (FEHB) program can expect significant increases in their health insurance premiums for the third consecutive year. The rising costs are a concern for the approximately 8.6 million people covered under the program, which includes current and retired federal employees, as well as their family members.
The premium increases vary widely among insurance carriers, with at least one plan experiencing a premium hike of over 100%. This wide swing in costs may be attributed to various factors, including changes in healthcare utilization patterns, rising medical costs, and the ongoing impact of the COVID-19 pandemic on the healthcare industry. As a result, enrollees may need to reassess their plan choices and consider alternative options to minimize their out-of-pocket expenses.
As councils and policymakers take note of these premium increases, they may need to consider the implications for federal employees and retirees, many of whom rely on the FEHB program for their healthcare coverage. To watch next: how these premium increases may affect participation in the FEHB program, whether there will be efforts to mitigate the cost growth, and how these changes may influence the broader healthcare market for government employees and retirees.
Originally reported by govexec.com. CouncilNews adds analysis for government & civic readers.