The Federal Employees Health Benefits Program (FEHBP) is entering 2025 with several major updates that directly affect millions of federal workers, retirees, and their families. As the largest employer-sponsored health insurance program in the United States, FEHBP covers more than 8.2 million people, offering hundreds of plan options across every state.
In October 2025, the U.S. Office of Personnel Management (OPM) announced important premium adjustments, new plan offerings, and key policy improvements. Here’s everything you need to know about the program, the upcoming Open Season, and how these changes could influence your healthcare costs in the year ahead.
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What Is the Federal Employees Health Benefits Program?
The Federal Employees Health Benefits Program (FEHB) provides healthcare coverage to millions of U.S. federal employees, retirees, and eligible family members. It remains one of the largest and most comprehensive employer-sponsored health insurance programs in the nation.
Managed by the Office of Personnel Management, the program offers access to nationwide healthcare options that often rival or even exceed those found in the private sector. Participants can choose from a wide variety of medical plans designed to fit different needs, family sizes, and budgets.
Across the country, there are more than 270 health plan options available through the program. These include traditional Fee-for-Service (FFS) plans, regional Health Maintenance Organization (HMO) plans, and innovative Consumer-Driven or High-Deductible plans that pair with savings accounts. Therefore, every employee or retiree can select a plan that aligns with their healthcare priorities and financial comfort level.
Each year, all participants have the opportunity to review and adjust their coverage during the annual Open Season. This period usually runs from mid-November through mid-December. During this time, employees and retirees can compare plans, switch providers, or update coverage types to match their changing personal or family needs.
This flexible structure ensures that the Federal Employees Health Benefits Program remains modern, responsive, and beneficial for every generation of public service workers.
Latest 2025 Updates from OPM
In its October 2025 announcement, OPM confirmed that the average premium rates for FEHB plans will increase by 5.8% in 2025 — slightly higher than the 4.9% rise seen in 2024.
Key highlights for 2025 include:
deral Employee Health Benefits: What’s Changing in 2025
The Office of Personnel Management (OPM) has announced significant updates to the Federal Employees Health Benefits (FEHB) Program for 2025. These adjustments focus on affordability, coverage expansion, mental health access, and prescription savings — ensuring federal employees and retirees continue to receive strong healthcare support in the coming year.
Below is a detailed look at the most notable changes that will affect enrollees in 2025.
Premium Changes: A Modest Increase in Employee Share
Federal employees will see a slight increase in their share of health insurance premiums in 2025.
On average, employees will pay about $8.90 more per pay period for self-only coverage. For those with family coverage, the average increase is around $21.40 per pay period.
While these increases are modest compared to prior years, they reflect ongoing trends in national healthcare costs. OPM noted that these adjustments are necessary to maintain the quality and sustainability of the FEHB program.
Importantly, the agency emphasized that despite the higher premiums, the FEHB remains one of the most comprehensive and competitive employer-sponsored health programs in the country. Employees are still benefiting from the government’s large contribution toward plan premiums, which helps buffer the impact of national healthcare inflation.
Expanded Plan Choices: New and Broader Options
In 2025, federal workers and retirees will have access to a wider range of health plans, reflecting OPM’s effort to encourage competition and improve choice.
Several regional Health Maintenance Organizations (HMOs) are expanding their service areas, bringing more localized coverage options to new counties and states.
Additionally, high-deductible and consumer-driven health plans (CDHPs) will become more widely available. These plans are designed for individuals who prefer lower premiums and are comfortable managing higher deductibles with tax-advantaged savings tools such as Health Savings Accounts (HSAs) and Health Reimbursement Arrangements (HRAs).
This expansion is intended to give enrollees more flexibility in choosing plans that match their health needs, financial goals, and preferred care models.
Enhanced Telehealth and Virtual Care Benefits
Telehealth, once considered an optional convenience, is now an essential component of modern healthcare.
In 2025, all major FEHB carriers will continue offering expanded virtual care services, a practice that began during the COVID-19 pandemic.
Employees can expect continued access to virtual primary care visits, specialist consultations, urgent care, and mental health sessions, often with low or no copays.
Many plans are also enhancing digital tools such as mobile apps, online scheduling, and remote monitoring features to make care more accessible and efficient.
This continued investment in telehealth is expected to reduce time away from work, improve access for rural enrollees, and support preventive care through easier follow-up visits.
Mental Health and Wellbeing: Greater Access and Support
Recognizing the ongoing importance of mental health, OPM has prioritized improvements in behavioral health benefits for 2025.
Most plans now include expanded access to therapy, no-cost preventive counseling, and behavioral health mobile apps designed to support stress management and emotional resilience.
In addition, virtual counseling services will remain covered at parity with in-person visits, ensuring employees can seek help conveniently and privately.
This approach aligns with federal initiatives promoting workplace wellness and mental health support for public servants.
The OPM stressed that these improvements are aimed at reducing barriers to mental healthcare, particularly for employees balancing demanding workloads and family responsibilities.
Prescription Drug Savings: Lower Out-of-Pocket Costs
Prescription affordability continues to be a key focus for OPM and FEHB carriers.
Many 2025 plans will include capped out-of-pocket costs for generic and preferred brand-name medications, helping enrollees manage recurring prescription expenses more predictably.
Some carriers are also offering discounts on maintenance medications, as well as mail-order options that provide cost savings and convenience for long-term prescriptions.
By emphasizing generic substitution and tiered pricing, OPM aims to ensure that employees and retirees can continue accessing essential medications without facing steep price increases.
A Focus on Balanced and Affordable Coverage
OPM Director Kiran Ahuja emphasized the agency’s commitment to maintaining affordability while improving overall coverage quality.
In her statement, she highlighted the agency’s focus on inclusivity and balance in healthcare planning:
“Our goal for 2025 is to ensure that every federal employee and retiree has access to affordable, high-quality healthcare options that meet diverse needs.”
Ahuja added that OPM continues to collaborate closely with carriers, employee organizations, and other federal stakeholders to create a sustainable health benefits system that keeps pace with evolving medical and economic conditions.
Encouraging Employee Engagement During Open Season
With more plan choices and benefit enhancements available, OPM encourages all eligible participants to review their coverage options carefully during the 2025 Open Season.
Employees can use online tools and comparison platforms provided by OPM to evaluate premiums, deductibles, and out-of-pocket costs before making final selections.
This year’s updates make it especially important for enrollees to compare benefits side-by-side, as even small differences between plans can lead to meaningful savings over time.
By actively reviewing options, employees can ensure that their chosen plan aligns with their current health needs and financial situation.
Looking Ahead: The Future of Federal Employee Healthcare
The 2025 FEHB updates demonstrate OPM’s continued effort to modernize federal health benefits while addressing the challenges of affordability, access, and innovation.
As the healthcare landscape evolves, OPM’s approach combines traditional insurance stability with forward-looking features such as telehealth expansion, digital care tools, and mental health integration.
These updates reinforce the government’s commitment to supporting the well-being of its workforce — both active employees and retirees — through responsive and comprehensive healthcare solutions.
Understanding Premium Changes
Premium adjustments vary by plan type and region. While some plans saw modest increases, others reported above-average hikes due to inflation, rising hospital costs, and pharmaceutical pricing.
Below is a snapshot of average premium changes by plan type for 2025:
| Plan Type | Average 2024 Monthly Premium | Average 2025 Monthly Premium | Change |
|---|---|---|---|
| Fee-for-Service (FFS) | $623 | $661 | +6.1% |
| HMO Plans | $598 | $627 | +4.8% |
| High Deductible (HDHP) | $540 | $569 | +5.4% |
| Consumer-Driven | $511 | $536 | +4.9% |
OPM attributes most of the increase to rising healthcare utilization, aging demographics, and post-pandemic adjustments in preventive care demand.
The 2025 FEHB Open Season: What You Need to Know
Open Season for the Federal Employees Health Benefits Program 2025 begins on November 11, 2025, and runs through December 9, 2025.
During this period, participants can:
- Enroll in a plan if newly eligible.
- Change from one FEHB plan to another.
- Switch between self-only, self-plus-one, or family coverage.
- Cancel or waive coverage if eligible for other insurance.
Federal employees can make changes via the Employee Express system, agency HR portals, or directly through OPM’s Open Season Online. Retirees under the Office of Personnel Management Retirement Services can adjust plans through Retirement Services Online or by mail.
Why FEHB Matters for Federal Workers and Retirees
FEHB remains one of the most valuable benefits of federal employment. Unlike many private-sector plans, FEHB continues into retirement as long as employees:
- Are entitled to an immediate annuity, and
- Were enrolled in FEHB for at least five years before retirement.
This continuity offers retirees stability during a time when healthcare costs are often unpredictable.
Moreover, the federal government continues to contribute about 70–75% of the total premium cost, making FEHB one of the most generous employer-sponsored health benefits programs in the world.
How Federal Agencies Contribute to Employee Premiums
The government’s contribution formula, set by law, determines how much it pays toward employee premiums. In 2025:
- The government covers 72% of the weighted average premium across all FEHB plans.
- Employee contributions cover the remaining 28%.
- Agencies deduct the employee share from each paycheck on a pre-tax basis, lowering taxable income.
This cost-sharing approach has helped maintain the long-term sustainability of the program for over six decades.
Expanded Telehealth and Behavioral Health Options
Telehealth continues to play a central role in FEHB plans for 2025. All major carriers, including Blue Cross Blue Shield (BCBS), Kaiser Permanente, and Aetna, are expanding coverage for virtual visits and remote care.
Notable improvements include:
- Zero co-pays for primary care telehealth visits in several plans.
- 24/7 mental health access through video consultations.
- Coverage for digital therapy platforms and mental health apps.
OPM has emphasized telehealth as a long-term healthcare solution rather than a temporary pandemic measure. It allows employees in rural areas and retirees with mobility issues to access care more efficiently.
Prescription Drug Benefits and Cost Controls
Pharmacy spending remains one of the biggest cost drivers in healthcare. To address this, several FEHB carriers have introduced tiered pricing, mail-order incentives, and caps on insulin costs.
For example:
- BCBS will cap out-of-pocket insulin expenses at $35 per month.
- Kaiser Permanente offers free home delivery for maintenance medications.
- Aetna’s “SmartRx” plan reduces generic drug co-pays to as low as $1.
These changes are designed to make chronic condition management more affordable for federal employees and retirees.
Dental and Vision Coverage: FEDVIP
Alongside the main health insurance options under FEHB, the Federal Employees Dental and Vision Insurance Program (FEDVIP) is also receiving several updates for 2025. This program continues to complement the broader Federal Employees Health Benefits Program by offering additional coverage for essential dental and vision care.
For 2025, premium adjustments will remain moderate. Average FEDVIP premiums will increase by about 2.9 percent, which is notably lower than the premium rise for FEHB health plans. This smaller increase helps employees and retirees maintain full coverage without significant added expense.
FEDVIP provides expanded access to dental and vision services through several well-known carriers. Participants can choose from a range of companies that include MetLife, GEHA, UnitedHealthcare, and VSP Vision Care. Each carrier offers multiple plan levels designed to meet the needs of individuals, couples, and families seeking reliable dental or vision protection.
Coverage under FEDVIP typically includes preventive dental exams, cleanings, orthodontic services, eye exams, glasses, and contact lenses. Many plans also provide discounts on corrective eye surgery and cosmetic dental procedures. Therefore, the program plays an important role in helping federal employees maintain long-term oral and visual health.
Enrollment for FEDVIP follows the same schedule as FEHB. Federal employees and retirees can add, change, or cancel coverage during the annual Open Season, which runs from mid-November through mid-December each year. Any changes made during this period will take effect at the start of the new plan year.
Overall, FEDVIP continues to enhance the federal benefits package by providing affordable options for vision and dental care. Its stable premiums, flexible plan choices, and alignment with FEHB make it a valuable addition to every participant’s healthcare coverage.
Retiree Considerations: FEHB and Medicare
For retirees aged 65 and older, understanding how FEHB interacts with Medicare is crucial.
Key facts for 2025:
- Retirees who enroll in Medicare Part A (hospital insurance) continue to have FEHB as primary coverage for outpatient services.
- Those who add Medicare Part B (medical insurance) often pay less in out-of-pocket FEHB costs.
- Many FEHB plans now reimburse part of the Part B premium, making it more cost-effective for retirees to maintain both.
OPM advises retirees to review coordination rules carefully to maximize coverage and minimize expenses.
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Consumer Tools for Comparing Plans
To simplify decision-making, OPM provides an updated FEHB Plan Comparison Tool on its website.
Features include:
- Side-by-side plan comparisons by region and zip code.
- Personalized cost estimates based on age and family size.
- Summaries of deductibles, out-of-pocket maximums, and drug benefits.
For 2025, OPM also integrated a telehealthfilter, allowing users to compare virtual care benefits across different carriers.
Financial Transparency and Accountability
To ensure transparency, OPM continues to require FEHB carriers to:
- Submit annual performance and quality metrics.
- Meet federal standards for accessibility, privacy, and equity.
- Maintain parity between mental and physical health benefits.
Additionally, OPM launched new initiatives to track provider network adequacy, ensuring that enrollees in all regions have timely access to care.
Trends Driving the 2025 FEHB Market
Three main trends are shaping FEHB in 2025:
- Rising Healthcare Costs
Inflation in hospital and drug costs continues to push premiums higher, although the government’s negotiated rates have slowed growth compared to private markets. - Technology-Driven Care
Digital platforms, wearable monitoring devices, and AI-driven diagnostics are transforming the patient experience, prompting FEHB carriers to modernize services. - Preventive Health and Wellness
Many plans now offer wellness incentives, including gym reimbursements, nutrition coaching, and annual screening bonuses for preventive care compliance.
Key Deadlines for 2025
| Event | Date |
|---|---|
| OPM Announcement | October 15, 2025 |
| Open Season Begins | November 11, 2025 |
| Open Season Ends | December 9, 2025 |
| New Coverage Effective | January 1, 2026 |
Employees who miss the Open Season must wait until the next cycle or a qualifying life event (e.g., marriage, birth, or change in employment status) to make adjustments.
Challenges Ahead
Despite its stability, the Federal Employees Health Benefits Program faces ongoing challenges:
- Managing cost growth amid inflationary pressures.
- Expanding coverage to rural and underserved populations.
- Keeping up with rapidly changing healthcare technology.
- Ensuring parity and inclusivity in coverage for all employee groups.
However, experts agree that FEHB’s size and diversity continue to make it one of the most robust employer health systems in the world.
How to Prepare for Open Season 2025
To make the most informed decision this year:
- Compare Plans Early: Use OPM’s comparison tool before the rush of late November.
- Review Premiums Carefully: Check both total cost and employer contribution amounts.
- Consider Life Changes: Family additions or upcoming retirement can affect your best choice.
- Leverage Telehealth: If you prefer virtual care, prioritize plans offering robust telemedicine options.
- Check Provider Networks: Ensure your doctors and hospitals are still in-network for 2025.
Being proactive can save thousands of dollars in premiums and out-of-pocket costs annually.
Final Thoughts
The Federal Employees Health Benefits Program 2025 continues to evolve, balancing affordability with quality care in an uncertain healthcare landscape. While premiums are rising, expanded telehealth, improved prescription coverage, and enhanced mental health support make this year’s offerings more comprehensive than ever.
For federal employees, retirees, and families, Open Season is the ideal time to review options and make smart choices that align with individual needs and budgets.
Whether you’re new to the program or a longtime participant, one thing remains constant — FEHB remains a cornerstone of federal employment, providing peace of mind to millions of Americans who dedicate their careers to public service.
FAQs
1. When does Open Season for the Federal Employees Health Benefits Program 2025 begin?
Open Season starts on November 11, 2025, and ends on December 9, 2025.
2. How much will FEHB premiums increase in 2025?
OPM announced an average premium increase of 5.8% across all plans, varying by provider and region.
3. Can retirees keep their FEHB coverage after enrolling in Medicare?
Yes. Retirees can maintain FEHB coverage alongside Medicare, and some plans offer reimbursement for part of the Medicare Part B premium.
Disclaimer:-This article provides factual information based on verified data from the U.S. Office of Personnel Management (OPM) as of October 31, 2025. It is intended for general awareness only and should not be considered financial or legal advice. For specific questions, visit OPM.gov or contact your agency’s HR office.