The Office of Personnel Management (OPM) has released the 2025 FEHB premiums for the Federal Employee Health Benefits Program (FEHB) and the Federal Employees Dental and Vision Insurance Program (FEDVIP).
The total average increase for the enrollees’ share of the 2025 FEHB premiums for current non-postal federal employees and federal retirees will be 13.5% next year. In 2024, the overall average premium increase was 7.7%, and it was 8.7% in 2023.
The total average increase for the 2025 FEHB premiums will be 11.2%. It was 5.8% in 2024 and 7.2% in 2023. The federal government pays for about 70% of the total cost of federal employees’ health insurance, so it’s still a valuable benefit for federal employees and retirees despite the continuing annual premium increases.
What is driving the premium increases in 2025? According to OPM, the cost increases are due to the impact of price increases by providers and suppliers, increased utilization of certain prescription drugs, and behavioral health spending. OPM also notes that the 2025 FEHB premium increases are generally aligned with those in the commercial market.
The full listing of FEHB premiums is available on OPM’s website.
For 2025, the FEHB program has 42 participating carriers offering 64 plans and a total of 130 plan options.
New FEHB Plan Benefits for 2025
OPM announced that FEHB programs will offer expanded fertility benefits to federal employees and their families. All FEHB plans and plan options must cover all methods of artificial insemination and the drug component of In vitro fertilization (IVF) (three cycles annually) at a minimum.
A choice of IVF coverage is available to every FEHB enrollee in every county in the U.S. There will be multiple plan options in each state offering IVF coverage. For example, two nationwide plans offered by Blue Cross Blue Shield and GEHA both offer an annual IVF benefit of $25,000 in one of their plan options. This $25,000 can cover the cost of IVF procedures and comes on top of coverage of the 3 cycles of drugs required by all plans.
In total, FEHB is providing 25 plans with 45 plan options offering IVF coverage above the required benefit.
OPM also announced that all FEHB plans in 2025 will provide anti-obesity medications. FEHB Carriers must cover at least one anti-obesity drug from the GLP-1 class for weight loss and cover at least two additional oral anti-obesity drug options.
Additionally, OPM emphasized that carriers must offer comprehensive behavioral therapy, covering appropriate diet and exercise regimens, for those prescribed anti-obesity medications.
2025 Federal Employees Dental and Vision Insurance Program (FEDVIP) Premiums
For the Federal Employees Dental and Vision Insurance Program (FEDVIP), the overall average premium for dental plans will increase by 2.97% in 2024, and the overall average premium for vision plans will increase by .87%. In 2024, the average premium increases were 1.4% and 1.1%, respectively.
The full listing of 2025 FEDVIP premiums is available on OPM’s website.
For 2025, FEDVIP will again have 12 dental carriers to provide 23 dental plan options across the Program. Seven dental carriers offer 14 nationwide dental plan options available to all potential enrollees. Five vision carriers provide 10 nationwide vision plan options available to all potential enrollees.
Historical Average FEHB Premium Increases
The table below shows the total average annual FEHB premium increases since 2009.
| Year | Total |
|---|---|
| 2025 | 11.2% |
| 2024 | 5.8% |
| 2023 | 7.2% |
| 2022 | 2.4% |
| 2021 | 3.6% |
| 2020 | 4.0% |
| 2019 | 1.3% |
| 2018 | 4.0% |
| 2017 | 4.4% |
| 2016 | 6.4% |
| 2015 | 3.2% |
| 2014 | 3.7% |
| 2013 | 3.4% |
| 2012 | 3.8% |
| 2011 | 7.2% |
| 2010 | 8.8% |
| 2009 | 8.0% |
| Average | 5.2% |
What About the 2025 COLA and 2025 Federal Pay Raise?
FedSmith readers often want to know how FEHB premium increases for their health benefits will compare to their COLA (for federal retirees) or pay raise (for current federal employees).
Current federal employees are likely to get a 2% average pay raise in 2025. This became the likely final raise amount when President Biden issued his alternative pay plan letter for a 2024 federal pay raise. However, this will not be 100% finalized until he issues an executive order finalizing the 2025 federal pay raise. This usually occurs sometime in December. FedSmith will provide the details as soon as the 2025 pay raise is finalized.
The 2025 COLA for federal retirees has not yet been announced, but it will be released in mid October when the latest inflation data become available. FedSmith will be publishing an article with the 2025 COLA amount as soon as it is available. As of the August 2024 inflation report, one estimate predicted next year’s COLA to be around 2.6%.
It is important to remember that the annual federal pay raise and the COLA are not the same thing. The cost of living adjustment (COLA) only applies to federal retirees, whereas the pay raise applies to current federal employees. Both are calculated differently as well. Many people often get the two confused based on comments and questions we receive which is understandable given their complexity .
When is the Federal Benefits Open Season?
The Federal Benefits Open Season will be held from November 11 through December 9, 2024. During this time, federal employees, annuitants, and other eligible individuals have the opportunity to review their FEHB and FEDVIP plan options, make changes, and enroll for the upcoming benefit year that begins January 1, 2025.
