What Are FEHB 2025 Premiums?

The Federal Employees Health Benefits Program (FEHB) provides a wide range of health insurance plans to federal employees and retirees. However, like many other health insurance programs, FEHB 2025 premiums have been steadily increasing. In 2025, these increases are particularly significant, prompting many federal employees and retirees to seek ways to manage the rising costs.

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Open season for the Federal Employees Health Benefits Program (FEHB) is just around the corner, and this year brings some significant changes to consider.While festive cheer fills the air, navigating your health insurance options can feel more like a financial maze. Don't worry, we've got you covered!

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Rising Costs and Increased Choice:

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Get ready for some sticker shock. FEHB premiums are projected to rise by an average of 13.5% in 2025, significantly higher than previous years. This reflects the rising cost of healthcare and an aging federal workforce. However, there's a silver lining. Open season also brings a wider range of choices, with 42 carriers offering 64 plans and a total of 130 plan options – more diversity than ever before.

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Will FEHB 2025 premiums Increase?

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Yes, FEHB premiums will increase in 2025. This year will see the largest annual increase in at least a decade, with an average of 13.5% more in costs for federal employees and retirees. This follows a 7.7% average increase in 2024 and an 8.7% average increase in 2023. OPM calculates these rates annually based on the previous year's healthcare plan usage by federal employees and retirees.

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When is FEHB 2025 premiums Open Season:

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The 2025 fehb premiums (Federal Employees Health Benefits) Open Season has concluded. This annual enrollment period, which ran from November 11 to December 9, 2024, allowed federal employees to make changes to their health insurance plans.

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Choosing the Right BCBS Plan: A Guide for Federal Employees

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Approximately two-thirds of federal employees opt for one of the three Blue Cross Blue Shield (BCBS) plans: Basic, FEP Blue Focus, or Standard. While each plan offers unique benefits, it’s crucial to evaluate your specific healthcare needs to make the most informed decision.  Additionaly we have also written a diffrent blog on current premium for medicare part b you can read that too.

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Premium Increases and Plan Comparisons

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For 2025, all three BCBS plans have experienced premium increases. However, FEP Blue Focus saw a more modest increase compared to Basic and Standard.

Key Differences Between Plans:

• Standard: Offers the most comprehensive coverage, including out-of-network provider access, mail-order prescriptions, skilled nursing care, and IVF coverage.
• Basic: Provides essential coverage, but with limitations on out-of-network care, mail-order prescriptions (primarily for annuitants with Part B), and specialized services.
• FEP Blue Focus: Offers a balance between cost and coverage, with a focus on in-network care and lower premiums.

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Potential Savings:

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If you're currently enrolled in the Standard plan and don't frequently utilize the additional benefits it offers, switching to Basic or FEP Blue Focus could result in significant savings. For instance, a family switching from Standard to Basic could save up to $3,147 annually, while switching to FEP Blue Focus could save up to $7,403.

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Making an Informed Decision:

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To maximize your savings and ensure optimal coverage, carefully consider the following factors:

• Healthcare Needs: Evaluate your family's specific healthcare needs, including frequency of doctor visits, prescription drug usage, and potential need for specialized care.
• Budget Constraints: Assess your budget and determine how much you're willing to spend on health insurance premiums.
• Provider Network: Ensure that your preferred healthcare providers are included in your chosen plan's network.

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Self-Plus-One vs. Self and Family: A Cost-Saving Dilemma for Federal Employees

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Understanding the Nuances

When it comes to Federal Employees Health Benefits (FEHB) plans, the choice between "Self-Plus-One" and "Self and Family" enrollment can significantly impact your healthcare costs. While it may seem intuitive that "Self and Family" would always be more expensive, there are instances where the opposite is true.

A Surprising Twist

Surprisingly, for many federal employees, particularly those in two-person households, enrolling as "Self and Family" can be more cost-effective than "Self-Plus-One." This counterintuitive finding is due to the complex pricing structure of FEHB plans.

The Financial Impact

Consider a two-person family in the D.C. area. By choosing the Kaiser High (E3) plan as "Self and Family" instead of "Self-Plus-One," they could save $64.23 bi-weekly, translating to a yearly savings of $1,670.

Why the Difference?

The reason for this discrepancy lies in the way FEHB plans are priced. The premium for "Self and Family" enrollment is not simply double the cost of "Self-Plus-One." In some cases, the additional cost for adding a family member is minimal, making "Self and Family" a more affordable option.

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Introducing Federal Pension Consultant, As a dedicated federal employee or retiree, you’ve spent your career serving others—now it’s time to prioritize your future. We’re here to help you secure the financial freedom and peace of mind you’ve earned.

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1. Federal Retirement Planning - Ensure a smooth transition into retirement with a comprehensive strategy tailored to your unique goals.

2. Financial Planning - Take control of your financial journey with a personalised plan designed to meet your short- and long-term goals.

3. 403(b) Plan Insurance Planning - Make the most of your 403(b) retirement savings with our guidance on optimising contributions, selecting investments, and managing tax advantages.

4. Federal Employee Life Insurance - Protect your loved ones with the right life insurance coverage. We provide clear insights into FEGLI (Federal Employees’ Group Life Insurance) and other options, helping you choose the best coverage to ensure peace of mind for you and your family.

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2025 FEHB rates

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Costs (what you pay in-network)

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Deductible and out-of-pocket maximum

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