The Federal Employees Health Benefits (FEHB) program is the largest employer-sponsored health insurance program in the world, providing health insurance to over 9 million federal employees, retirees, and their families. The FEHB program is administered by the Office of Personnel Management (OPM) and offers a variety of health insurance plans from which federal employees can choose.
In recent years, the cost of FEHB premiums has been rising steadily. In 2023, FEHB premiums increased by an average of 6.8%. For 2025, OPM has proposed an average FEHB premium increase of 7.9%. This increase is due to a number of factors, including the rising cost of healthcare, the aging of the federal workforce, and the increasing use of expensive specialty drugs.
