The Office of Personnel Management announced yesterday that health insurance premiums for federal employees are expected to rise by eight percent in 2009. The increase represents a huge jump in costs, as insurance premiums only increased 2.9 percent from 2007 to 2008.

Blue Cross and Blue Shield plan holders, representing 60 percent of government employees, can expect to pay up to 13 percent more next year for their coverage.

Nancy Kichak, OPM's associate director for strategic human resources policy, blamed the steep increases on a variety of factors, including elevated service costs, miscalculated earlier estimates, and an increase in the utilization of medical services and technology.