Health Insurance Costs for Federal Employees to Increase in 2022

Press Release September 29, 2021

Washington D.C. – Federal employees and retirees on average will pay 3.8 percent more for health insurance in 2022, a lower price increase than last year but still a noticeable cut to take-home pay for federal employees around the country. 

Federal Employees Health Benefits Program (FEHB) enrollees who purchase health insurance for themselves and their families will pay $10.09 more per bi-weekly pay period on average next year, according to data released Wednesday by the Office of Personnel Management. 

OPM said that nearly 94 percent of FEHB enrollees will see an increase in premiums of 5 percent or less, a major improvement over 2021 rates when more than half of enrollees saw premiums jump 5 percent or higher.  

“Clearly the administration did a better job holding down the employees’ share of premium costs in the FEHB program for 2022, and we commend that progress,” said NTEU National President Tony Reardon. “But we will encourage our members to prepare for price increases and use the upcoming open enrollment season to evaluate all of their options to decide which plan is best for themselves and their families.” 

Open season for federal employees to re-enroll or change their health insurance for next year starts Nov. 8 and goes through Dec. 13.    

For employees who enroll in the nationwide Blue Cross and Blue Shield standard option, for example, the family coverage will cost them $314.11 per biweekly paycheck in 2022, an increase of $13.99 over this year.  

OPM reports that price increases are in part caused by prescription drug prices, so NTEU continues to encourage Congress to allow FEHB to use its status as the largest employer-sponsored health insurance program in the country to negotiate better rates that will benefit millions of enrollees. 

OPM also reports that the employer’s share of FEHB premiums will increase 1.9 percent, for an overall average premium increase of 2.4 percent.  

NTEU represents about 150,000 employees in 34 federal agencies and departments.