Federal employees should brace for a big jump in health insurance costs. Rates for Federal Employee Health Benefits will rise 6.4 percent for 2016, double last year's rate increase, the Office of Personnel Management announced.

The rate increase is the largest hike since 2011 saw a 7.3 percent spike in premiums.

Richard Thissen, president of the National Active and Retired Federal Employees Association, said in a statement that federal employees would again be paying health insurance costs that outpace pay raises.

"For the sixth year in a row, the FEHBP premium increase will take a bite out of the already reduced paychecks of federal employees across the country," he said. "The 6.4 percent increase in health insurance premiums is slightly higher than various estimates of private-sector increases, and it could even mean reduced take-home pay for some federal employees, who are slated to receive a 1.3 percent pay raise next year."

Average enrollee premium rates will increase 7.4 percent— which will mostly affect retirees—while the government share is expected to be 6 percent. The imprecision of the numbers comes because of variables between enrollees such as the plans they select, according to OPM.

One new addition to FEHBP for 2016 is the Self Plus One plan, which covers an employee and one dependent, providing more flexibility for smaller households.

Thissen applauded the Self Plus One addition and its ability to let some federal employees save more on health care, though, he said, their premiums will still rise.

"NARFE members have long advocated for this change, and we are pleased it will finally be an option," he said.

OPM said other plans will also see jumps, with premiums for HMOs set to increase an average 5.4 percent and fee-for-service plans seeing an average 6.6 percent increase.

But Thissen added that retirees may be hit the hardest, with their premiums seeing a 7.4 percent jump and the likelihood of a cost of living adjustment increase in peril.

"In a year in which health insurance costs are increasing substantially, we can clearly see a need for a new formula to calculate COLAs, one that accurately reflects the health care costs of our nation's seniors," he said.

American Federation of Government Employees president J. David Cox also took issue with the premium hikes related as they related to compensation and benefits.

"Federal employees have endured five years of frozen or minuscule pay raises, while retirees aren't getting a dime of additional support next year," Cox said, in a statement. "How are they supposed to maintain their standard of living when costs for essential things like health care keep going up?"

Open enrollment for health insurance changes will open on Nov. 9 and run until Dec. 14. Insurance plan changes will take effect Jan. 1.

For more information on FEHBP changes, visit OPM's site.

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