Federal Employees Face 10.9% Increase in Health Premiums as Open Season Dates Announced

Federal employees will pay higher prices for health insurance in 2027.

On average, federal employees enrolled in the Federal Employees Health Benefits Program (FEHB) will pay 10.9 percent more toward their premiums in 2027, marking the third straight year of double-digit increases in the employee share.

That works out to an average increase of $13.37 per biweekly pay period for employees enrolled in “self only” plans and $40.25 for those with family coverage.

Enrollees in the Postal Service Health Benefits Program (PSHB) will pay an average of 8.2 percent more for their premiums. 

The federal government covers roughly 75 percent of FEHB and PSHB participants' premiums. When accounting for the government’s share of premium costs, FEHB rates are increasing by 9.3 percent, and PSHB rates are increasing by 6.7 percent overall.

The Office of Personnel Management (OPM) attributed the rising prices to various factors including the increasing cost of healthcare overall, and spending on certain prescription drugs such as GLP-1s. OPM noted that the average premium increase is trending downward from prior years.

Open Season Dates

OPM also announced that Open Season will run from November 9 through December 14, 2026.

In 2027, FEHB will have 45 participating carriers offering 118 plan options, while PSHB will have 17 participating carriers offering 65 plan options. 

The Federal Employees Dental and Vision Insurance Program (FEDVIP) will have 11 dental carriers offering 21 plan options and five vision carriers offering 10 plan options. Premiums for dental will rise by an average of one percent, while premiums for vision will rise by an average of 1.6 percent. 

“We encourage employees and annuitants to compare their options, review their costs, and make any changes before the December 14 deadline,” said Matthew Kiley OPM Associate Director for Healthcare and Insurance.

New for 2027, eligible employees can select a FSAFEDS Visa FSA Card to pay for qualified health care, pharmacy, dental, and vision expenses at the point of sale. Participants can choose the card or continue using paperless reimbursement.

Also new– a requirement that when a federal employee or annuitant adds a new family member to coverage, that they submit supporting documentation. 

Federal Labor Groups Cite Premium Increases 

Federal employee organizations criticized the premium increases, particularly as most civilian feds are facing a proposed pay freeze in 2027.

“I worry how the cumulative impact of rising costs and damaging workforce policies will impact the ability to recruit and retain the workforce needed to meet the nation’s needs and serve the public interest,” said National Active and Retired Federal Employees Association (NARFE) President William Shackelford.