Health Premiums to Rise 7.4%

Federal health premiums will rise by an average of 7.4 percent in 2010, according to the Office of Personnel Management. The average increase includes the government's share and employee's share of the overall premium.

Generally, the government pays about 70 percent of the premium for most plans in the Federal Employee Health Benefits Program, and enrollees pay the rest. Premiums will rise by an average of 8.8 percent for the enrollee's share of the premium, an OPM spokesman said Tuesday. Premiums will rise less than 5 percent for approximately 14 percent of FEHB enrollees, the spokesman added.

The 2010 premium hike marks the largest since 2004, when premiums rose 10.6 percent on average. Last year, premiums rose by an average of 7 percent.

The steep hike in federal premiums gives the government less of an edge over major private sector technology companies, many of which cover the full cost of individual employee premiums and a portion of dependent premiums.

Federal employees and retirees can change their health insurance plans during the open season, which will run from Nov. 9 to Dec. 14.