Insurance premiums continue to rise steadily in America, and that includes FEHB premiums that federal employees and federal retirees pay.
The 2023 FEHB premiums rose considerably, and federal employees and retirees will be paying, on average, 8.7% more this year vs. last year for their portion of premiums under the Federal Employees Health Benefits (FEHB) program. Overall, 2023 FEHB premiums increased by an average of 7.2% over 2022.
These are averages, so not all FEHB plans’ premiums will increase by this amount.
Historical Blue Cross Blue Shield Nationwide Premium Increases
One of the more popular plans under the Federal Employees Health Benefits (FEHB) program is Blue Cross Blue Shield. Under the nationwide plan, there are three options: FEP Blue Focus, the Standard Option, and the Basic Option.
The tables that follow provide an overview of how the premiums have risen for these plans from 2019-2023. The tables contain data from OPM for the monthly premiums for the employee’s share, the government’s share, and the percentages paid by the employee and government of the total monthly cost.
Fee for Service (FFS) Monthly Premiums – Employee’s Share
| Plan | Enrollment Code | Enrollment Type | 2019 | 2020 | 2021 | 2022 | 2023 | Total Increase |
| Blue Cross and Blue Shield Service Benefit Plan Basic Option | 111 | Self | $159.74 | $164.55 | $170.31 | $173.73 | $187.78 | 14.12% |
| Blue Cross and Blue Shield Service Benefit Plan Basic Option | 112 | Self & Family | $384.02 | $414.31 | $436.08 | $459.96 | $515.48 | 24.42% |
| Blue Cross and Blue Shield Service Benefit Plan Basic Option | 113 | Self Plus One | $369.56 | $386.99 | $409.87 | $424.95 | $472.12 | 22.00% |
| Blue Cross and Blue Shield Service Benefit Plan FEP Blue Focus | 131 | Self | $115.15 | $115.15 | $115.15 | $115.15 | $117.46 | 2.01% |
| Blue Cross and Blue Shield Service Benefit Plan FEP Blue Focus | 132 | Self & Family | $272.29 | $272.29 | $272.29 | $272.29 | $277.75 | 2.01% |
| Blue Cross and Blue Shield Service Benefit Plan FEP Blue Focus | 133 | Self Plus One | $247.55 | $247.55 | $247.55 | $247.55 | $252.51 | 2.00% |
| Blue Cross and Blue Shield Service Benefit Plan Standard Option | 104 | Self | $243.17 | $253.30 | $267.48 | $276.19 | $308.53 | 26.88% |
| Blue Cross and Blue Shield Service Benefit Plan Standard Option | 105 | Self & Family | $581.13 | $621.27 | $650.26 | $680.57 | $753.77 | 29.71% |
| Blue Cross and Blue Shield Service Benefit Plan Standard Option | 106 | Self Plus One | $555.83 | $578.83 | $608.43 | $627.49 | $690.84 | 24.29% |
Fee for Service (FFS) Monthly Premiums – Government’s Share
| Plan | Enrollment Code | Enrollment Type | 2019 | 2020 | 2021 | 2022 | 2023 | Total Increase |
| Blue Cross and Blue Shield Service Benefit Plan Basic Option | 111 | Self | $479.21 | $493.64 | $510.93 | $521.21 | $562.73 | 14.00% |
| Blue Cross and Blue Shield Service Benefit Plan Basic Option | 112 | Self & Family | $1138.19 | $1184.02 | $1218.21 | $1243.95 | $1,324.74 | 11.88% |
| Blue Cross and Blue Shield Service Benefit Plan Basic Option | 113 | Self Plus One | $1066.59 | $1092.26 | $1121.16 | $1136.70 | $1,214.46 | 11.19% |
| Blue Cross and Blue Shield Service Benefit Plan FEP Blue Focus | 131 | Self | $345.44 | $345.44 | $345.44 | $345.44 | $352.40 | 2.01% |
| Blue Cross and Blue Shield Service Benefit Plan FEP Blue Focus | 132 | Self & Family | $816.89 | $816.89 | $816.89 | $816.89 | $833.27 | 2.01% |
| Blue Cross and Blue Shield Service Benefit Plan FEP Blue Focus | 133 | Self Plus One | $742.66 | $742.66 | $742.66 | $742.66 | $757.55 | 2.00% |
| Blue Cross and Blue Shield Service Benefit Plan Standard Option | 104 | Self | $498.72 | $510.84 | $523.42 | $530.53 | $562.73 | 12.83% |
| Blue Cross and Blue Shield Service Benefit Plan Standard Option | 105 | Self & Family | $1138.19 | $1184.02 | $1218.21 | $1243.95 | $1,324.74 | 16.39% |
| Blue Cross and Blue Shield Service Benefit Plan Standard Option | 106 | Self Plus One | $1066.59 | $1092.26 | $1121.16 | $1136.70 | $1,214.46 | 13.86% |
Employee’s Percentage of Monthly Premiums
| Plan | Enrollment Code | Enrollment Type | 2019 | 2020 | 2021 | 2022 | 2023 | Average | Govt. Pays |
| Blue Cross and Blue Shield Service Benefit Plan Basic Option | 111 | Self | 33.33% | 33.33% | 33.33% | 33.33% | 33.37% | 33.34% | 66.66% |
| Blue Cross and Blue Shield Service Benefit Plan Basic Option | 112 | Self & Family | 33.74% | 34.99% | 35.80% | 36.98% | 38.91% | 36.08% | 63.92% |
| Blue Cross and Blue Shield Service Benefit Plan Basic Option | 113 | Self Plus One | 34.65% | 35.43% | 36.56% | 37.38% | 38.87% | 36.58% | 63.42% |
| Blue Cross and Blue Shield Service Benefit Plan FEP Blue Focus | 131 | Self | 33.33% | 33.33% | 33.33% | 33.33% | 33.33% | 33.33% | 66.67% |
| Blue Cross and Blue Shield Service Benefit Plan FEP Blue Focus | 132 | Self & Family | 33.33% | 33.33% | 33.33% | 33.33% | 33.33% | 33.33% | 66.67% |
| Blue Cross and Blue Shield Service Benefit Plan FEP Blue Focus | 133 | Self Plus One | 33.33% | 33.33% | 33.33% | 33.33% | 33.33% | 33.33% | 66.67% |
| Blue Cross and Blue Shield Service Benefit Plan Standard Option | 104 | Self | 48.76% | 49.58% | 51.10% | 52.06% | 54.83% | 51.27% | 48.73% |
| Blue Cross and Blue Shield Service Benefit Plan Standard Option | 105 | Self & Family | 51.06% | 52.47% | 53.38% | 54.71% | 56.90% | 53.70% | 46.30% |
| Blue Cross and Blue Shield Service Benefit Plan Standard Option | 106 | Self Plus One | 52.11% | 52.99% | 54.27% | 55.20% | 56.88% | 54.29% | 45.71% |
Overall Average FEHB Premium Increases 2019-2023
For comparison purposes, I have also included the overall average FEHB premium increases for the same time period in the table below for the employee and government portions as well as the total average FEHB premium increases.
| Year | Employee | Govt. | Total FEHB |
|---|---|---|---|
| 2019 | 1.5% | 1.2% | 1.3% |
| 2020 | 5.6% | 3.2% | 4.0% |
| 2021 | 4.9% | 3.0% | 3.6% |
| 2022 | 3.8% | 1.9% | 2.4% |
| 2023 | 8.7% | 6.6% | 7.2% |
| Average | 4.9% | 1.2% | 3.7% |
Observations
The FEP Blue Focus plans had negligible overall increases compared to the other options. I do not know why; it is a relatively new plan that became available in 2019.
Some people will see these figures and become upset at seeing the employee’s share of the premiums increase faster than the government’s share during these time periods. However, the FEHB program is still a very valuable benefit. Keep in mind that the federal government pays a little over 70% of the cost of a federal employee’s or retiree’s health insurance premiums. OPM states:
The average premium is a program-wide average of the enrollment charges for all individuals who are eligible to receive a Government contribution, with separate determinations for Self Only and for Self and Family enrollments.
The average premium is recalculated every year.
Per FEHB law, the government will pay the lesser of: 75% of the carrier’s total premium, or 72% of the average premium. The enrollee is responsible for the difference between the government contribution and the total premium.
If the average premium increases, the maximum government contribution also increases.
