After shutdown, federal employees face new uncertainty: affording health insurance

By Phil Galewitz, KFF Health News

Larry Humphreys, a retired Federal Emergency Management Agency worker in Moultrie, Georgia, says he and his wife won’t be traveling much next year after their monthly health insurance premium payment increases more than 40%, to $938.

Humphreys, 68, feels betrayed by the Federal Employees Health Benefits Program. “As federal employees, we sacrificed good salaries in the private sector because we thought the benefits from government would be better now, in retirement,” he said.

As the nation’s largest employer-sponsored health insurance program, the FEHB Program covers more than 8.2 million federal government employees and retirees, and it was once celebrated as a national model for controlling costs while giving enrollees many health plan options.

But next year, average enrollee premium payments in the system are set to jump more than 12%, on top of a 13.5% hike in 2025. The two-year increase is higher than what many private employers and their workers are experiencing.

The FEHB rate hikes are similar to those for plans sold on the Affordable Care Act exchanges — excluding the government subsidies most enrollees get, a major point of contention on Capitol Hill. The premiums insurers charge for Obamacare plans are rising 26% on averag...