Premiums for Federal Employees Health Benefits Program to rise 3.7%

Health insurance premiums for the program that covers federal employees and retirees will increase an average of 3.7% next year, according to the U.S. Office of Personnel Management.

That 3.7% increase for the Federal Employees Health Benefits Program — the nation's largest group plan, which covers 8.2 million people — is the third consecutive year that the average premium increase was less than 4%. In 2013, premiums increased an average of 3.4%, while premiums rose an average of 3.8% in 2012.

Next year's average premium increase for the federal program is in line with the 3.8% average premium increase in 2013 that the Kaiser Family Foundation found in a survey of more than 2,000 employers.

“The FEHB Program delivers competitive rates and benefits through an efficiently run program to attract and retain top talent in the in the federal service,” OPM Acting Director Elaine Kaplan said in a statement Tuesday.

Next year, 256 health plans will be offered to federal employees and retirees, up from this year's 230. Many plans, though, operate only in specific geographic areas.

Federal employees can make their 2014 health plan selections between Nov. 11 and Dec. 9. On average, the federal government pays just over 70% of the premium.