Federal Employees’ Share of FEHB Premiums to Increase Nearly 5% in 2021

How much will you pay for coverage under FEHB and FEDVIP next year? OPM has announced the 2021 premiums.

The Office of Personnel Management announced today that currently enrolled non-Postal federal employees and retirees can expect to pay an average of 4.9% more towards their share of health insurance premiums in 2021.

Although a 4.9% premium increase is not likely to be welcome news to federal employees, the upcoming annual increase is less than 2020’s increase in which premiums went up by an average of 5.6%. In 2019, FEHB premiums rose on average by 1.5%; in 2018, they went up an average of 6.1%.

These are some additional statistics OPM provided about the 2021 FEHB premiums:

  • The overall average increase for non-Postal employees and annuitants will be 3.6%.
  • The government’s contribution will increase by 3%.
  • The enrollee share will increase an average of 4.9%.
  • For Self Only, the average premium increase is 3.5%.
  • For Self Plus One, the average increase is 3.5%.
  • For Self and Family, the average increase is 3.7%.

These rate averages are based on 2020 plan enrollment.

OPM said that it has negotiated a new 7-year contract for the Federal Employees Dental and Vision Insurance Program (FEDVIP). OPM said it does not anticipate a significant premium increase for current FEDVIP enrollees but said that federal employees and retirees under this program should research the various options and choose the one that best meets their needs.

This year’s Open Season runs from Monday, November 9 to Monday, December 14. During this time, federal employees and other eligible individuals the opportunity to review their FEHB and FEDVIP plan options, make changes, and enroll for the upcoming benefit year that begins January 1, 2021.

“Our team has worked diligently throughout the year with healthcare providers and carriers to secure top-tier health benefits for federal employees, retirees, other eligible individuals, and their families,” said OPM Acting Director Michael J. Rigas. “We hope today’s announcement will help members of the Federal community successfully plan for the coming Open Season.”

About the Author

Ian Smith is one of the co-founders of FedSmith.com. He enjoys writing about current topics that affect the federal workforce.

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