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Washington, D.C.—Premium increases for Federal Employee Health Benefits Program (FEHBP) plans will average 4.4 percent next year, according to the Office of Personnel Management (OPM) which today released premium costs for 2017. Based on the formula under the law, average premium increases for employees and retirees will rise by 6.2 percent while the government’s share will increase 3.7 percent. FEHBP covers approximately 8.2 million federal employees, retirees and eligible family members.

“FEHBP benefits play an essential role for federal employees and retirees but its ever-rising costs are troubling,” NTEU National President Tony Reardon said. “We stand ready to work with a new president and the next Congress on various reforms, including prescription-drug costs and supply chain reforms, as well as eliminating the so-called ‘Cadillac plan tax.’ These are measurable ways to further reduce enrollee health care costs.”

“The premium increases also call attention to the need to provide federal employees with decent pay raises so they can adequately provide for their families,” Reardon said.

While the rate increases for FEHBP in 2017 generally are in line with industry averages, the pay of federal workers is not. Federal employees have suffered through six years of no or extremely modest pay increases.

Rate increases for the 1.7 million participants in the Federal Employees Dental and Vision Insurance Program also are increasing. Premium increases for dental plans are rising by 1.9 percent while premiums are jumping 6.3 percent for vision coverage.  

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