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Washington, D.C.— The increase in health premiums for federal employees in 2015 of 3.2 percent announced by the Office of Personnel Management (OPM) is lower than increases of the past two years.

A positive development for the Federal Employees Health Benefits Program (FEHBP) is the coverage of 400,000 young people between the ages of 20 and 26 who are dependents of federal employees. The National Treasury Employees Union (NTEU) strongly supported legislation that made this coverage available.

A second previously uninsured group will soon have access to FEHBP coverage, again at NTEU’s urging. Final rules shortly will be put in place opening up the federal health program to full time temporary and seasonal employees who will work at least 90 days for a federal agency.

“NTEU will continue to press for actions to reduce premiums for federal workers and retirees by supporting legislation that would significantly strengthen federal oversight of the prescription drug benefits,” said NTEU President Colleen M. Kelley. “At the same time, NTEU is working to reestablish fair federal pay increases to help federal families meet increasing costs in health care and other living expenses.”

The FEHBP does not regulate or negotiate drug pricing for its enrollees but rather relies on competition among its various carriers and their Pharmacy Benefit Managers to negotiate prescription drug benefits and maintain affordable prices. As a result FEHBP and enrollees are paying more than they should, said President Kelley.

The union supports legislation that would change that.

The 2015 average increase in FEHBP premiums is half a percentage point lower than the 3.7 percent increase for 2014.

FEHBP is the largest employer-sponsored health care program, with nearly nine million federal employees, retirees and their families enrolled in its various plans.

OPM provided this FEHBP breakdown for 2015: enrollees can choose from 257 plans; the average increase for the most popular plans—the standard Blue Cross and Blue Shield plans—will be 3.7 percent for self-only and 4.1 percent for family coverage.

At the same time, premiums for the FEDVIP dental program will rise by 1.7 percent, compared to less than 1 percent last year, while vision care premiums will rise by 1.5 percent next year. There are no government contributions to premiums for these plans.

OPM also noted a significant change in the operation of flexible spending accounts (FSAs), effective in 2015. For the first time, federal employees will be permitted to roll over into the next benefit year up to $500 of the money they have set aside in a health FSA. These unspent funds would then be available to reimburse eligible expenses in 2016. Moreover, the minimum annual contribution required for a health FSA has been lowered from $250 to $100.

As the largest independent federal union, NTEU represents 150,000 employees in 31 agencies and departments.